Pension Politics
Tuesday, July 8, 2008
Edit
It looks similar the legislature in addition to the governor are to a greater extent than or less a cope on pensions. While they bring decided to exclude the University of California from the reforms, everyone within in addition to exterior of the UC arrangement should hold upwards concerned near the politics behind this movement to rein inward world pensions. First of all, ane of the principal motivations to brand this cope at in ane lawsuit is that many Democrats experience that the best manner to coax voters to back upwards the governor’s taxation maiden is to exhibit citizens that the Dems are serious near controlling time to come governmental expenditures. Also, many Democrats inward the legislature believe that they tin win a super-majority inward both houses, in addition to and thus they are going afterwards seats inward swing districts.
However, at that topographic point are several wide issues concerning this pension reform that nosotros should consider. First of all, what does it enjoin near unions in addition to the Democratic political party when they atomic number 82 the manner inward reducing benefits for time to come workers. In the proposed novel system, many workers volition bring a difficult fourth dimension waiting until 65-67 to retire, in addition to the modify inward retirement historic flow volition trim down their retirement checks past times a large total (during a fourth dimension when retiree healthcare costs volition decease on to increase). While it looks similar the Dems are beingness responsible, who is protecting the most vulnerable workers? Another major occupation is that the cope undermines collective bargaining in addition to the mightiness of workers to merchandise wage increases for retirement security.
What the electrical flow give-and-take of pension reform fails to refer is that the major crusade for the underfunding of pension plans is investment losses, in addition to this reform puts all of the blame on the toll of benefits. What nosotros request is existent Wall Street reform, which would protect pension funds against huge losses. It every bit good does non assistance that the Fed is keeping involvement rates in addition to thus depression that pension funds bring to movement almost all of their coin from bonds to stocks in addition to other higher conduct a opportunity property classes. Moreover, the recent Libor scandal shows that pension funds bring lost pregnant value because banks bring manipulated involvement rates.
History may scream upwards this flow every bit a fourth dimension when all of the major liberal institutions—unions, the Democratic party, in addition to world employees—accomplished the goals of the conservative revolution. While it may seem that nosotros are alone trying to exhibit earth that nosotros are fair in addition to rational, nosotros are genuinely feeding the Romney-Ryan rhetoric that the alone solutions to our problems is to cutting the benefits of the side past times side generation.
However, at that topographic point are several wide issues concerning this pension reform that nosotros should consider. First of all, what does it enjoin near unions in addition to the Democratic political party when they atomic number 82 the manner inward reducing benefits for time to come workers. In the proposed novel system, many workers volition bring a difficult fourth dimension waiting until 65-67 to retire, in addition to the modify inward retirement historic flow volition trim down their retirement checks past times a large total (during a fourth dimension when retiree healthcare costs volition decease on to increase). While it looks similar the Dems are beingness responsible, who is protecting the most vulnerable workers? Another major occupation is that the cope undermines collective bargaining in addition to the mightiness of workers to merchandise wage increases for retirement security.
What the electrical flow give-and-take of pension reform fails to refer is that the major crusade for the underfunding of pension plans is investment losses, in addition to this reform puts all of the blame on the toll of benefits. What nosotros request is existent Wall Street reform, which would protect pension funds against huge losses. It every bit good does non assistance that the Fed is keeping involvement rates in addition to thus depression that pension funds bring to movement almost all of their coin from bonds to stocks in addition to other higher conduct a opportunity property classes. Moreover, the recent Libor scandal shows that pension funds bring lost pregnant value because banks bring manipulated involvement rates.
History may scream upwards this flow every bit a fourth dimension when all of the major liberal institutions—unions, the Democratic party, in addition to world employees—accomplished the goals of the conservative revolution. While it may seem that nosotros are alone trying to exhibit earth that nosotros are fair in addition to rational, nosotros are genuinely feeding the Romney-Ryan rhetoric that the alone solutions to our problems is to cutting the benefits of the side past times side generation.