Government Workers Ride Into a Golden Sunset on the Backs of Taxpayers
By Jon Coupal
For those who work in the private sector, the dream of enjoying
a comfortable retirement has become just that -- a dream.
The impact of the recession continues to be brutal, especially on older workers.
“More than seven-in-ten (72 percent) workers over the age of 60 who said
they are putting off their retirement are doing so because they can’t
afford to retire,” according to a recent survey by CareerBuilder. In
California, with unemployment and under employment totaling over 21
percent – only Michigan with its decaying auto industry is worse off –
older people being forced to work longer may regard themselves as lucky
just to have a job.
This is not a concern for those who enjoy the job security of working
for California government. The highest paid public workers in all 50
states -- some of whom are able to retire as many 15 years earlier than
the private sector average with pensions nearing full time-pay --
continue to be shielded from the impact of our dismal economy by their
sponsors in the state Legislature.
Even though the cost to taxpayers for public employee retirement
benefits has increased by 2000 percent from $150 million per year to
over $3 billion over the last ten years, most in Sacramento remain with
their heads firmly planted in the sand. And if a $3 billion dollar
shortfall does not seem like so much today, the future is revealed by a
report released by Stanford University that shows California’s public
retirement plans are underfunded by $535 billion. That is an estimated
liability of about $36,000 per household.
Enter State Senator Dennis Hollingsworth with a modest legislative
proposal designed to help protect taxpayers while continuing to assure
the retirement security of government workers. Hollingsworth’s
solution is to put the retirement system on a more actuarially sound
basis, with changes to the benefits for newly hired workers.
For new hires, and new hires only, his bill, SB 919, would require
non-public safety public employees, who can currently retire at age 55
with full benefits, to work until age 65. It would extend the age for
full retirement for public safety workers from 50 to 57, while removing
milk inspectors and billboard inspectors from the public safety worker
classification. And it would base retirement benefits on the average
of the three highest years of pay, instead and the single highest year.
Although Hollingsworth does nothing to interfere with the lavish
guaranteed pensions for current government workers, expect the public
employee unions to go “postal” and to lean heavily on client lawmakers
who they helped elect, to kill any and all pension reform legislation.
However, the union bosses would be wise to take this deal. They should
beware the growing anger of those in the private sector forced to work
harder and longer so that public employees can fully retire in comfort
while still young enough to start a second career.
The backlash is building and the result could be a much more draconian
reform that would make the Hollingsworth plan look like a gift. After
all, taxpayers are content to see government workers ride off into the
sunset to a secure retirement, they just don't want to look up and find
themselves carrying them there on their backs.
Jon Coupal is president of the Howard Jarvis Taxpayers Association –
California's largest grass-roots taxpayer organization dedicated to
the protection of Proposition 13 and the advancement of taxpayers'
rights.
For those who work in the private sector, the dream of enjoying
a comfortable retirement has become just that -- a dream.
The impact of the recession continues to be brutal, especially on older workers.
“More than seven-in-ten (72 percent) workers over the age of 60 who said
they are putting off their retirement are doing so because they can’t
afford to retire,” according to a recent survey by CareerBuilder. In
California, with unemployment and under employment totaling over 21
percent – only Michigan with its decaying auto industry is worse off –
older people being forced to work longer may regard themselves as lucky
just to have a job.
This is not a concern for those who enjoy the job security of working
for California government. The highest paid public workers in all 50
states -- some of whom are able to retire as many 15 years earlier than
the private sector average with pensions nearing full time-pay --
continue to be shielded from the impact of our dismal economy by their
sponsors in the state Legislature.
Even though the cost to taxpayers for public employee retirement
benefits has increased by 2000 percent from $150 million per year to
over $3 billion over the last ten years, most in Sacramento remain with
their heads firmly planted in the sand. And if a $3 billion dollar
shortfall does not seem like so much today, the future is revealed by a
report released by Stanford University that shows California’s public
retirement plans are underfunded by $535 billion. That is an estimated
liability of about $36,000 per household.
Enter State Senator Dennis Hollingsworth with a modest legislative
proposal designed to help protect taxpayers while continuing to assure
the retirement security of government workers. Hollingsworth’s
solution is to put the retirement system on a more actuarially sound
basis, with changes to the benefits for newly hired workers.
For new hires, and new hires only, his bill, SB 919, would require
non-public safety public employees, who can currently retire at age 55
with full benefits, to work until age 65. It would extend the age for
full retirement for public safety workers from 50 to 57, while removing
milk inspectors and billboard inspectors from the public safety worker
classification. And it would base retirement benefits on the average
of the three highest years of pay, instead and the single highest year.
Although Hollingsworth does nothing to interfere with the lavish
guaranteed pensions for current government workers, expect the public
employee unions to go “postal” and to lean heavily on client lawmakers
who they helped elect, to kill any and all pension reform legislation.
However, the union bosses would be wise to take this deal. They should
beware the growing anger of those in the private sector forced to work
harder and longer so that public employees can fully retire in comfort
while still young enough to start a second career.
The backlash is building and the result could be a much more draconian
reform that would make the Hollingsworth plan look like a gift. After
all, taxpayers are content to see government workers ride off into the
sunset to a secure retirement, they just don't want to look up and find
themselves carrying them there on their backs.
Jon Coupal is president of the Howard Jarvis Taxpayers Association –
California's largest grass-roots taxpayer organization dedicated to
the protection of Proposition 13 and the advancement of taxpayers'
rights.
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