The Constitution can’t protect underfunded public pensions

NY Post ^ | November 12, 2017 | Nicole Gelinas

[Oshkalaboomboom]

Government-employee unions won in a landslide last week, defeating New York’s ballot question to update the state constitution by 78 percent to 16 percent. Public-sector groups were worried that any changes would imperil their pensions, which the constitution guarantees.

But public-sector workers should worry less about words and more about numbers.

Whenever anyone writes that public-sector pensions are unsustainable, New York union leaders have a rejoinder: The constitution guarantees them. Such benefits, according to the document, “shall be a contractual relationship, the benefits of which shall not be diminished or impaired.”

Unions are wary of any threat to this. “The best way to protect our pensions is to defeat the initial [Con-Con]question when it appears on the November ballot,” the United Federation of Teachers counseled in January. “Be ready to fight for your own interests.”

The clause, though, isn’t as ironclad as it sounds. A contractual relationship is important — but it can be changed. Companies and cities can change contracts through bankruptcy.

States can’t go bankrupt. But Puerto Rico was prohibited by federal law from going bankrupt, too — until its fiscal crisis spurred Congress to create a special law last year. Now, Puerto Rico has defaulted on general-obligation bonds protected under its own constitution. It has done so to protect payments to pensioners — even though Puerto Rico’s constitution doesn’t mention pensions.

In a crisis, expediency governs. Puerto Rico’s pensioners are politically more popular than bondholders. New York’s government workers might not like to think so, but they, too, depend on public will — and that depends on money.

[Oshkalaboomboom]

I was in a union for 15 years. When union members talk about protecting benefits like pensions they mean their own benefits. They could give a rat's behind what happens to future members.

[PeterPrinciple]

States can’t go bankrupt. But Puerto Rico was prohibited by federal law from going bankrupt, too — until its fiscal crisis spurred Congress to create a special law last year.

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Bankruptcy is just a set of rules as to who gets paid and who doesn’t under insolvency.

Countries have gone “bankrupt” it is just that there were no rules.

Looks like there is precedent on who gets paid in state insolvency...........................

[taildragger]

So the taxpayers become inmates in a debtor’s prison? That doesn’t fly with me, I am being party to a contract where I was not a signatory....

[mewzilla]

Then there’s the fact that states can’t print money. Add to that the fact that NYS has been losing House districts for decades, which means less juice in the body with the power of the purse...

NYS is so screwed. It’s no wonder we’re hemorrhaging jobs, taxpayers, and House seats.

[mewzilla]

Gives new meaning to “public service”, eh? The taxpaying public exists to service the servants.

[Amendment10]

Noting that I’m not familiar with the situation in NY, please consider the following.

If legal NY voters are not getting out to vote, then that is their problem. If the sheeple allow the crooks to sink NY, then the states can always remove a star from the flag and declare NY a U.S. Territory.

On the other hand, if legal voters are voting, but their elected local and state leaders are not listening, then citizens can turn to Congress for a remedy.

"Article IV, Section 4: The United States shall guarantee to every State in this Union a Republican Form of Government, and shall protect each of them against Invasion; and on Application of the Legislature, or of the Executive (when the Legislature cannot be convened) against domestic Violence."

Oops, a correction …

Given the current corrupt Congress left over from the lawless Obama Administration, concerned NY citizens may want to wait until after the 2018 elections before going to Congress with their state government problems. It will hopefully be a Congress with some new faces that will actually do its job to enforce constitutionally enumerated protections.

In the meanwhile, just as with the other states, NYers will need to make sure that there are plenty of Constitution-respecting candidates on the 2018 primary ballots, and pink-slip career lawmakers by sending patriot candidate lawmakers to D.C. on election day.

[mewzilla]

The con-con vote was state wide. While the rapidly depopulating Upstate is mostly red, Downstate, with the possible exception of Staten Island, is very blue. We’re outnumbered.

[mewzilla]

BTW, if you think NYS isn’t your problem, it might very well be if the state goes to Uncle Sam demanding a public pension bailout....

[litehaus]

“I was in a union for 15 years.”

I told my wife 15 years ago union retirees are gonna have their lives sadly disrupted in the future.The PBGC is/was a joke !