Read Chris Tobe’s reaction to Illinois’ decision to cut retiree pensions.
“Public workers for the last 30 years were paid, most thought, a fair total compensation package which included salary, health care and a defined-benefit retirementsystem. I don’t recall many legislators in Illinois or anywhere else claiming that a single teacher, policeman or firefighter was over compensated until now. If their pensions were too high, then perhaps their salary was too low.
The second big myth is that this liability can be fixed by altering future benefits and shifting everyone to a 401(k). This makes for much theater as labor fights to keep benefits and others fight to take them away. However the bulk of the liability is from taking from the modest past earned benefits of retirees and veteran workers and is totally unaffected by all this theater. ” – Marketwatch 12/3/2013
2 big myths about Illinois pension reform
Politicians are using the unions as whipping boys to take the heat off their own actions.