State pension plans differ widely, especially teacher pension plans. The attack on state pension plans is the same because the big money behind the power politics wants it to be.
Illinois Democrats and Florida Tea Party Republicans are twins – not identical twins, but twins nonetheless. Neither is trustworthy or completely honest. Pension reform?
Florida: “Legislative presiding officers told journalists Wednesday a fundamental shift in the Florida Retirement System — making new public employees join 401(k)-style investment plans rather than the traditional ‘defined benefit’ pension system — is the only way to avoid obligating future lawmakers to impose massive tax increases on state residents.”
“If you wait until you’re a 45 or 50 percent pension fund, like Illinois or California, you can’t afford to transition into a defined contribution because you’ve got to continue that scheme going to fund the broken model.”
Read the full article HERE.
In Illinois this premise has been spouted by Illinois Democrapublicans who have been blessed with more corporate money than Midas could have imagined and damned by ignoring the truth revealed over and over to us all. There is no benefit to employees, the state or the economy with defined-contribution plans.
Well, the Teapublicans are planning to force public employees, especially teachers, to take part in the Florida legislature approved 401(k) plans which would allow their fund manager buddies to collect annual management fees from all public employees compelled to pay their own money into their plans. Can Illinois be far behind?
Imagine collecting 1 or 2 percent of every forced dollar placed in a public pension plan from every public employee every year for their entire working careers. No need to imagine. Go to Floridaillinois or Illinoisflorida. Who would want to make teaching or any public service a career with legislatures committing this legalized theft?
We definitely need to reclaim reform.