Thursday, February 11, 2010

Young Guns vs. the Vested Interests

Capitol 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.

8 comments:

Sweet Cashback said...

Good to see she is dressing appropriately for our north-east weather....

Sweet Cashback said...

Her FIRST arrest should be the meteorologists that predicted a snow Armageddon in the NYC area yesterday......

Lex said...

NYS just did this, guranteeing a future of lousier govt services while protecting current workers and all those recent 50-yr old retirees who milked the taxpayers dry and will give back absolutely zip (including state-tax-free status for their bennies).

"Pensions promised current employees and retirees are regarded as vested rights, protected by contract law..."

I wouldn't count on it -- just ask the Chrysler bondholders.

Jean ValJean said...

Holy cow-- now we're talking...

Sorry-- did you say something?

segfault said...

The feds cut their pension system for new hires in the 1980s and many states have followed in their footsteps. I'm surprised CA hasn't thought of this already.

(Don't worry about Casey, his parents are already vested in the current system, which is doubtlessly more generous than what will come.)

Property Flopper said...

Yes, that's what we've been missing, a litte eye-candy.

I used to do some contract work for the UC system. With CA hurting and cutting back on education spending, they've had to trim back a little. One of the things they did was make employees start contributing to their own retirement again.

Emps used to pay 5% of their salary in, but when the system was flush, the UC decided not to charge them. Well... you'd have thought the world was going to end the way the people screamed about having to pay again.

"Entitlement Attitude" does not even BEGIN to address the way they felt. It was sickening to watch... but great fun to laugh at them when they fumed.

getyourselfconnected said...

Dawg,
I am pretty sure you wrote about something but I now cannot remember, nice pic!

H Simpson said...

sitting here watching Pulp Fiction.

At the very end in the diner scene, ever notice how much Ringo the hold up guy looks like Casey?

h.