Young Guns vs. the Vested InterestsCapitol Weekly has a wide ranging discussion of California's long term obligations. As I've long suggested the tragedy of split employment has been raised:
“But I have come to the conclusion it’s a very strong likelihood I would be looking out for future employees by negotiating a second-tier retirement system,” he said. “The last thing we want to do is leave it to the initiative process.”
Creating a second tier of lower benefits for new hires is one way to lower pension costs. But significant savings can take decades, until employees with the lower benefits begin to retire.
Pensions promised current employees and retirees are regarded as vested rights, protected by contract law, that cannot be reduced without providing something of equal value.
File this one under crueler harder society as well.