Monday, July 5, 2010

State Pensions and the Delicate Problem of Goose-Killing - The Agenda - National Review Online

In some instances, unions that are making concessions are trying to ward off what they see as a much bigger threat—the specter of a switch from a defined benefit plan to a defined contribution plan, which is similar to a 401(k) in the private sector.

That worry was behind some recent union concessions in Minnesota, said Eliot Seide, executive director of AFSCME in St. Paul. Mr. Seide said his board agreed to a reduction in cost-of-living adjustments for current retirees “reluctantly,” so that “we don’t kill the goose that lays that golden egg.”

We wouldn’t want to do that. And incidentally, if you are a net contributor to a state government, you’re the goose. 

Honk if you're a net contributor to state government.

Posted via email from rhymeswithclown's posterous

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