Critics of pension reform in the public sector are fond of saying 401k style plans rely on the whims of Wall Street as payoffs are predicated on getting investment yields well above fixed rate investments.
The current public sector pension is also highly dependent on the Wall Street "casino". The Comproller always boasts of the investment income from Wall Street when things are going well, but is quick to hike contribution rates to local government when stocks don't yield at the unrealistic levels needed to meet obligations.
The problem with the present system is that it is so easily gamed (legally) to produce benefits that bear no relation to what was put in over the years.
One thing I do agree with critics of the Governor on is that the succession of "tiers" is confusing and creates multiple classes of employees depending on when they were hired. The call for a "Tier 6" so soon after "Tier 5" was created speaks to the depths of the problem in paying for all that's been promised.
Watertown Daily Times | Close tax loopholes to pay for pensions