Pensions. Too bad Arnold caved into the government employees on the pension reform. Now the whole state faces this problem! Way to go Arnold!!
Come San Diego, join Pittsburgh in Mayor Murphy(D) induced bankpuptcy. You'll like it. /sarc
This is the sort of thing that makes me nostalgic for the days of Roger Hedgecock.
I visited Ramona last summer. Had a great time.
I have read some of the postings about the pension problems in San Diego. Do not confuse that mismanaged mess with PERS, the state pension that Arnold tried to destroy. Even Newt admonished him to lay off.
Fact: PERS is one of the best run pension funds in the country. As of February 2005, PERS investment portfolio market value: $186 billion and growing. Last year employee contributions: $1.8 billion. Last year payment to retirees: $7.5 billion. Last years investments returned: $24 billion. PERS is not a failing system as suggested by the governor. It is clearly successful, profitable, and self-sustaining.
I don't understand why ordinary citizens align themselves with the powerful and wealthy corporations against their middle class neighbors. Instead of fighting people who have a decent salary and pension, we should be trying to extend these benefits because right now, the middle class is losing ground, rapidly. Since 2000, the average household income lost approximately $1500.
401Ks are just another sign of middle class decline. Instead of an old fashioned pension with guaranteed retirement benefits, 401Ks only guarnatee that participants make payments, but there is no guarantee the money will be there when it's time to retire. To date, my 401K fund is still about 3/4 of what it was before the market bubble. And, 401Ks are vulnerable to employer theft. According to the Wall Street Journal, employer theft was up 3700% last year leaving employees with no protection and no money. Only 55,000 firms are large enough for mandated audit of their plans, while over 600,000 plans are open to looting. This is not the direction we should wish for ourselves or for state employees.
There is no economical reason for Arnold to change PERS to a risky 401K plan, therefore it must be that he is aligning himself with the have-mores, the corporate wealthy instead of the people of this state he vowed to help. I suggest there are two reasons:
1) In the next 10 years baby boomers will be cashing in their own 401Ks and the market will drop unless infused with new money. Just as the main reason for Social Security privatization is to get more money into the stock market, a great risk to participants, Arnold also wants to help float the Wall Street Gang at the expense of state employees.
2) PERS has been very outspoken in its demands for corporate accountability. It does not invest in corporations that are not open. Corporations want PERS money, but they don't want nosy middle class stock holders wielding power in their board rooms. By destroying PERS, this powerful beacon for the middle class is eliminated.