Monday, December 17, 2012

State Pensions

"The stakes here are high for both parties. San Bernardino is desperate to save money anywhere it can, and pension contributions are among its largest costs. Calpers, meanwhile, wants to avoid setting a dangerous precedent that cities in trouble can refuse payments. There are plenty of distressed cities throughout the state, and they will be watching this showdown closely. If San Bernardino can get off without making payments, other cities will expect the same treatment, leaving Calpers with a serious crisis on its hands."

What I think of when I see this is that the people who made the unsustainable promise - the politicians and union leaders of the day - are the only ones who will not suffer the consequences of their choices.

The workers, the taxpayers, and economy as a whole will pay dearly for their deal.

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