February 26, 2014

NO ONE IS SAFE, from pension disaster. “Even in the best case scenario, the delay in the increase of state contributions will make the whole process more expensive than it would have been if the state simply bit the bullet and upped its contributions immediately. We can’t help but notice, too, another example of politicians putting off contribution increases until they are safely out of office. This reminds us more than a little bit of the kick-the-can game—often played with the unions’ full knowledge and support—that got pensions into this trouble in the first place. The fact that many of these reforms are written in a way that leaves current workers’ plans untouched but hits future workers’ benefits hard does nothing to dispel this notion.”