Schwarzenegger backs off pension privatization plan

San Jose Mercury News ^ | 4/7/5 | Andrew LaMar

[Carry_Okie]

Schwarzenegger terminates his own initiative, again.

What a man.

[calcowgirl]

Good news! It was a lousy initiative, as devised. It would have cost the state more, despite requiring greater contributions from employees. I hope he has the backbone to pursue a real reform, although his choice of selecting a toothless spending cap tells me he won't.

Now that all his Wall Street contributors won't make a bundle off of a defined contribution system, I wonder if he'll have to give a rebate to his donors.

[calcowgirl]

WWTMD? We know the asnwer to that.

I might know the answer if I could figure out the question. :-)

[ElkGroveDan]

What Would Tom McClintock Do?

[calcowgirl]

Thanks! I never would have figured that out. lol.

[telebob]

"Yeah, it's fun to pit other people against each other who just want to avoid poverty in old age."

Get a grip. Do you know anything at all about the CalPers retirement system for public safety officers? Public safety employees can retire at age 50 with 90% pay after 30 years service. That's fifty with a fhe...

The only people facing bankruptcy are the cities and counties who's politicians were greedy enough to make a deal with the devil for police and firefighter union support. The pay off was the heightened exposure to contractual debt. Now they are watching as their general fund obligations for public safety retirement go through the roof and crowds out other needed services.

Spend some time on the issue and then see if you want to lay in with your Little Granny Fieldmouse analogies, 'kay?

[churchillbuff]

This so-called "reform" will end up cancelling pensions for elderly workers on the verge of retirement"""

Wrong, it would have only applied to new workers. Why can't government workers get by on 402k,s like the taxpayers who pay their salaries?

[Torie]

Only one thing comes to my mind: GIRLY MAN.

[Torie]

Arnold sells out.

[telebob]

"This so-called "reform" will end up cancelling pensions for elderly workers on the verge of retirement. That's simply abuse."

That's simply bullsh*t. No public employee who is currently enrolled in the CalPers system would have their pensions or pension accrual methods changed in any way. Public employees hired after 1/2007 would go to a 401k system much like any other employee. The current CalPers system is gauranteed to all current employees and is a contractual obligation. No court is going to allow any 'canceling' of current employee benefits.

The CalPers board of directors is dominated by union officers and politicians beholding to unions. You can google up any number of stories about the ongoing malfeasance of the CalPers board.

As for transfer costs, you can either pay them up front and have them out of the way or amortize them over say, a ten year period. It doesn't matter because these are more or less fixed costs and not ongoing obligations.

I say let's do it...