Posted on 12/05/2004 9:09:29 PM PST by NormsRevenge
Declaring rising pension debt a "ticking time bomb," a California legislator proposes converting public employee retirements from a traditional defined-benefit system to the 401(k)-style plans held by most American workers.
Employees hired by a public agency after July 1, 2007, would automatically be enrolled in the new contribution plan proposed by Assemblyman Keith Richman (R-Northridge). The plan would make pension payments for public agencies more predictable and potentially lower costs, he said.
Although the measure would not affect the 1 million workers now employed by the state, local governments and school districts, Richman expects the bill to meet stiff resistance from public employee unions and majority Democrats when introduced to the Legislature on Monday.
Union leaders say Richman's proposal would make pensions less secure and could leave retirees with insufficient income in their old age. Democrats on the Assembly pension committee could not be reached for comment.
But in the past they have been reluctant to support even modest changes. When state Sen. Tom McClintock (R-Thousand Oaks) in the last session attempted to repeal a pension boost for several hundred state workers, he was blocked by the Democrat majority.
Gov. Arnold Schwarzenegger's administration later ruled that the workers did not qualify for the fatter pensions.
If nothing is done about the flood of pension debt, Richman warns, the effect on public safety, education, health and other services could be disastrous.
(Excerpt) Read more at latimes.com ...
Wow. Is this the same "moderate" Republican Dr. Keith Richman who teams up with that "moderate" Democrat Joseph (somebody) every year to go along with Democrat tax increases? Maybe he's better and gutsier than I thought he was.
As long as he stays away from the Democrat tax increases....
Complete control is what the government wants - prop up Wall St. till they've emptied the trough.
Before they do this, why don't they roll-back the benefit levels to what they were a couple years ago. There is nothing to stop them from doing this on a prospective basis for existing and new employees.
We have a million public 'workers' in a state of 33 million? When I start my new country, I'll demand that no more than one person per one-hundred be publically employed.
No wonder this state's been less-than friendly toward free enterprise. Had no idea I was living in a command economy. I thought all along our problems were due to the liberal idiots I meet each day and come to find, many of them work for the state. Shazzam!
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