Posted on 06/30/2009 7:31:32 AM PDT by SmithL
California public employee unions already reeling from pay cuts have been dealt a new blow by Gov. Arnold Schwarzenegger – a push to lower pension and retiree health care benefits for state workers hired after today.
Schwarzenegger's call for creation of a two-tier system of retiree benefits was part of a package of proposals submitted to Democratic leaders Saturday in tense negotiations over the state's $24.3 billion shortfall.
The plan would not affect existing state employees.
The governor previously had imposed about a 9 percent pay cut on state workers by requiring two unpaid furlough days per month. Last week he threatened to add a third furlough day unless a budget deal was struck immediately.
"Attacking hard-earned pensions, on top of a pay cut, does not solve the crisis," said Yvonne Walker, president of Service Employees International Union Local 1000.
"The governor should go after larger dollars that will make an impact now, by closing corporate tax loopholes and putting a stop to $34 billion in wasteful vendor contracts," Walker said in a written statement.
Senate President Pro Tem Darrell Steinberg said he is willing to consider pension changes but will not be ramrodded by the governor.
"The entire issue of pension reform deserves real consideration in the Legislature, but it's not right to jam it into a budget agreement in (the final) hours," Steinberg said.
(Excerpt) Read more at sacbee.com ...
Unless the state and city plans are converted to defined contribution plans..they will bankrupt the state and local govts. They no longer can afford to offer defined benefit plans at 100% of the final years pay. It just isn’t possible. The change needs to be retroactive, not just for new employees. We may need bankruptcy to trigger this change..so let’s do it.
Ohhh, that’s gonna hurt.
That sounds fair. I mean everyone is grandfathered and if someone is hired after today they know the benefits that they are hired for and then they can make a choice of sacrificing for the good of the state state for a smaller paycheck or becoming greedier by getting a significantly higher paycheck on the civilian side.
Reagan is the one who lowered the retirement for military.
Pay and pension cuts for state employees? Why, how cruel...asking these people to live they way employees of actual businesses do. Good grief, just raise taxes on the evil rich!
Definitely has to be retroactive and the only way to get these rip-off pensions revisited is via bankruptcy
I see a scheme/scam here that Schwarzenegger will beg for Federal money soon and he wants to be able to say "We are solving our problems. Just look at how we changed the pension system" Of course being non-retroactive
Pensions in the private sector are being replaced by 401K matching contribution plans (and as of late, the matching contributions are being pared down). It’s a hard sell to expect that people in the private sector be taxed to the hilt to fund cushy pension benefits for the public sector that they don’t enjoy themselves.
“California public employee unions already reeling from pay cuts have been dealt a new blow by Gov. Arnold Schwarzenegger – a push to lower pension and retiree health care benefits for state workers hired after today.”
This is the way you create classes in your society.
This country has no room for doing this, as we should be treated equal.
SCOTUS just ruled that you cannot discriminate.
Social Security should be the ONLY RETIREMENT PLAN for Public Employees and Public Servants...
Forgot the </src>?
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