Another Tea PArtier wants to cut pensions for public workers

[Quantum Windbag]

When will they learn that it isn't fair to make public workers actually contribute to pensions?

Mayor Rahm Emanuel took his case for reining in soaring pension costs to state lawmakers today, saying change is needed or Chicago's "quality of life will suffer."

Emanuel called for a pause on cost-of-living increases for 10 years to allow pension systems "to catch its breath." He wants city employees to increase their contributions 1 percent each year for five years and to allow employees to be offered a choice of retirement plans.

"The day of reckoning has arrived," Emanuel said, saying taxpayers, retirees and employees want politicians to be honest and "level with them" about the problems.

A rare step for a Chicago mayor, Emanuel personally pitched his ideas for cutting costs to a House pension panel. It's an approach that his immediate predecessor, Richard M. Daley, had not taken, though he made a variety of appearances over the years.

Emanuel said the cost-of-living pause is necessary because retirees are getting increases while current employees are unable to get similar increases. For example, a retiree making a $60,000 pension in 1995 is now receiving $100,000. After 10 years of a pause, Emanuel said the plan would go to a simplified cost-of-living adjustment rather than annual compounded increases.

Rahm Emanuel to state lawmakers on pension costs: 'Day of reckoning has arrived' - chicagotribune.com

What is that? Emmanuel isn't a Tea Partier, he is actually a Democrat?

 

[eflatminor]

When will they learn that it isn't fair to make public workers actually contribute to pensions?

Mayor Rahm Emanuel took his case for reining in soaring pension costs to state lawmakers today, saying change is needed or Chicago's "quality of life will suffer."

Emanuel called for a pause on cost-of-living increases for 10 years to allow pension systems "to catch its breath." He wants city employees to increase their contributions 1 percent each year for five years and to allow employees to be offered a choice of retirement plans.

"The day of reckoning has arrived," Emanuel said, saying taxpayers, retirees and employees want politicians to be honest and "level with them" about the problems.

A rare step for a Chicago mayor, Emanuel personally pitched his ideas for cutting costs to a House pension panel. It's an approach that his immediate predecessor, Richard M. Daley, had not taken, though he made a variety of appearances over the years.

Emanuel said the cost-of-living pause is necessary because retirees are getting increases while current employees are unable to get similar increases. For example, a retiree making a $60,000 pension in 1995 is now receiving $100,000. After 10 years of a pause, Emanuel said the plan would go to a simplified cost-of-living adjustment rather than annual compounded increases.

Rahm Emanuel to state lawmakers on pension costs: 'Day of reckoning has arrived' - chicagotribune.com

What is that? Emmanuel isn't a Tea Partier, he is actually a Democrat?

Another Democrat, Zein Obagi, is running for California's 33rd and is campaigning on similar lines with regard to public unions. Perhaps reality is beginning to hit home.

 

[Mad Scientist]

Emanuel called for a pause on cost-of-living increases for 10 years to allow pension systems "to catch its breath." He wants city employees to increase their contributions 1 percent each year for five years and to allow employees to be offered a choice of retirement plans.

Sounds good to me!

After 10 years of a pause, Emanuel said the plan would go to a simplified cost-of-living adjustment rather than annual compounded increases.
He also talked about a choice, or alternative, plan, potentially some type of proposal that would not undermine a defined contribution plan.
The plans offer different ages for retirement, but the proposal would increase the retirement ages by five years in each plan. The thought is that it would be phased in over a decade.
Another piece of the plan is that the city would not want to increase its contributions until the system can be fixed.

I like his ideas. The City can't pay pensions so he offers solutions that don't include raising taxes. But he makes no mention of layoffs or reducing gov't.

Plus, if the economy doesn't turn around, it'll all be moot.