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Last login: Tuesday, February 28, 2012
At about 11:30 into the show, Ms. Lutar stated that the pension costs rose because some state legislation allowed it and cities jumped onto a bandwagon to increase pensions. I would disagree with her on these statements. There are 2 major reasons for this "emergency": One is a change some years ago in Federal regulations which required pensions to be funded as though every member of the program would retire today, a way to require a huge refunding. This was promoted at the SEC by our trustworthy financial institutions. Second was increasing worker benefits by governing boards instead of increasing wages - keeping the apparent cost of labor down while postponing the costs. A third reason for the current push to change to a 401(k) plan is to reduce the power of public pension funds as shareholders.
I would wish that a public service media like KPBS would delve further into this background so the public could get the full story of this current pension "crisis" rather than the somewhat misleading numbers being thrown around the media.
February 28, 2012 at 2:04 p.m.
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