Re:The Pension Hole for U.S. Cities and States Is the Size o...
by dragonwriter on Monday July 30, 2018 @08:13PM
(#17649468)
> But even when a city says to unionized workers, you can keep your pension but new hires get moved to a 401k, the unions say no.
Well, yeah, because then 5 years down the road, when the city tries to shift pension contributions from the city to covered employees on the defined benefit plan, newer employees have no incentive to support the older employees and the employer can split the union. Which is why unions resist anything that gives different covered employees radically different contract interests.
Well, yeah, because then 5 years down the road, when the city tries to shift pension contributions from the city to covered employees on the defined benefit plan, newer employees have no incentive to support the older employees and the employer can split the union. Which is why unions resist anything that gives different covered employees radically different contract interests.