Wednesday, October 06, 2010

Public backlash against government pensions building

Government workers’ pensions – that is, state, county and municipal workers—are becoming the most visible target as states and local government scramble to balance their budgets, in another story today in the Washington Post by Michael A. Feltcher, link here.

The backlash against local civil servants continues, as government compensation and benefits have long been passing those in private business. Although the problem sounds novel, as more governments find their pension funds don’t follow acceptable accounting, it has gone on a long time. Back in the 1970s financial crisis in New York City (the “Ford to City: Drop dead” story), it took the teachers’ union to help settle it.

But today more local governments have to raise retirement ages and increase retired employee contributions, and reduce future benefits.

The tsunami of bad news about government employees' pensions rushes in.

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