Comptroller candidate Harry Wilson is right on this one.....The Paterson proposal to allow the state and local governments to pay some of this years pension contributions over time is just a bad idea happening to a bad system.
Its in essence borrowing...something the Governor said he would not do.
And the assumption that the pension fund portfolio will earn an "industry standard' of 8% a year is crazy.
We don't need a defined benefit system in today's world....we can't afford all the six figures pensions and if were are going to have all that, we cannot afford all these rosy assumptions. It is actuarily unsound....And as a component of the Governor's "or else" budget on Monday, it's wrong.
The problem is pension contribution rates are soaring...especially for localities because so many of their employees are in the lucrative 20 year and your out plans for police and fire. If the law says they are to be paid now...so be it...find the economies needed to meet those obligations.
We cannot again just kick the can down the road.
Pension option sparks attack - Capitol Confidential
4 comments:
No body showed up for McGrath
This is a good example of why so many "experts" are shortsighted when the budget agreements are made. Not one of them plans for a future of lower revenues. Those pension terms seemed like the best alternative at the time. Why criticize Paterson? His legislature gives him no choice.
But Mr Mayor, since you seem to have all the right answers, why don't you help P out?
The answer is not to offer 20 year retirements and scale back the ones that are already there. But it makes more sense to deny that gravity exists. In fact, why don't we offer people that hardly deserve, need, or qualify in any way for early retirement, early retirement. Like teachers. Oh, that's right, we just did that.
This is a state full of challenged folk. Enjoy what you have done.
It's interesting folks some 30 years ago there was a study that says the City of h20 was understaffed @ thr City fire depts. I wonder if there was another study done recently to make sure we don't have to many. And really why can't they retire in say 25 years? Police are no different.
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