Sunday, June 20, 2010
New Jersey Looking at Ways to Cut Existing State Pensions
The NY Times says Governor Christie's Administration is seeking ways to legally cut the pension benefits of current state retirees, not just future hires. The administration says such cuts are imperative to avoid a collapse of the state pension system in the next decade. But I'd say such cuts would fall neatly into Christie's reckless slash and burn policy aimed at saving taxpayer dollars at any cost. If you're a state pensioner, be mindful that the Tea Party is looking to reduce your check.
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Before any one talks about what should be done to the state pensions it should be made clear what the history of failure of the state is to make it's contributions to the pension plan. How many years as the state failed to make it's contribution? It's 10 going on 15 years. There has also been money borrowed from the plan I believe.
ReplyDeleteFor some one to cry danger about the funding of the state pension it is much like some one in a ship chopping away at the ship's hull and then crying that the ship is sinking
You're right to say that this is not a new problem. The adequacy of the pension system was undermined every time the legislature failed to make a scheduled contribution and/or borrowed from it for other purposes. Governor Christie has a way of looking at the status quo and blaming the people who are due a check -- whether that be teachers, librarians, school administrators, government workers, or now, state pensioners. A competent government saves for a rainy day and meets its obligations. We don't have one of those, granted, but Christie has come in with a scythe and he's swinging it at anyone who gets a paycheck. If the populace wasn't so upset about high taxes, they'd more clearly see what is happening.
ReplyDeleteThe ship is truly sinking and its the Christie administration that most recently has been chopping away at the hull.