Re:California’s public pensions are breaking the bank
by spikels on Monday April 10, 2017 @07:25PM
(#14083469)
> I don't understand why it's controversial that California (or any other state) should be legally obligated to pay the pensions they promised to workers.
One reasonable objection is that public pensions are never fully funded at the time they were negotiated with the public sector unions. This is done on purpose to make the cost look lower to get a better total compensation package. They know they will almost certainly be bailed out later. This is fraud.
Public workers should be forced into defined contributions plans like 401-Ks.
One reasonable objection is that public pensions are never fully funded at the time they were negotiated with the public sector unions. This is done on purpose to make the cost look lower to get a better total compensation package. They know they will almost certainly be bailed out later. This is fraud.
Public workers should be forced into defined contributions plans like 401-Ks.