Employee Unions and Governments are Fully to Blame

The state and local governments are fully to blame for having accepted the constitution and operation of pension plans, salaries and other benefits that are totally dependent on unrealistic economic circumstances.

Did they expect the economy of Florida would keep increasing forever and that people will keep moving to Florida irrespective of the environmental, social and economic conditions here?  Did they think that governments can function without realistic reserves and revenues? Did they think that taxpayers will keep subsidizing irrational pensions, salaries and other benefits?  Do the firefighters and police think that they are so indispensable that societies will pay them outrageous salaries and pensions?  Did the unions think that they could keep their friends in power to protect their salaries and pensions?

Time has run out on these games.

Time has come for the city of Coral Gables to correct a terrible injustice to its taxpayers.

“I want to have a pension plan that people can rely on,” Scott said. “That’s my whole focus. It’s only fair that if you’re going to have a pension plan you’re going to do just like the private sector does.”

The previous day, the governor unveiled a proposal to save $2.8 billion over two years through a number of measures aimed at the state’s retirement plans. Among them: the requirement that employees who participate in the Florida Retirement System contribute 5 percent of their salaries toward their benefits.

via Florida pension overhaul: Unions will fight, but expect Gov. Rick Scott to get his way on pensions – South Florida Sun-Sentinel.com.

Gov. Rick Scott’s plan to chop into the state’s budget by requiring state workers to pay into their pension plan is a good idea, according to the majority of Sunshine State voters interviewed in a recently released Quinnipiac University poll.

The governor has said he would require workers to pay 5 percent of their salaries into the pension plan. Currently, the state is the only contributor to the pension, and Scott said that requiring the employee contributions would save the state $2.8 billion over the next two years.

But those on the giving end think it stinks.

via Scott’s pension plan popular with public, not with employees.

Gov. Rick Scott’s plan to chop into the state’s budget by requiring state workers to pay into their pension plan is a good idea, according to the majority of Sunshine State voters interviewed in a recently released Quinnipiac University poll.

The governor has said he would require workers to pay 5 percent of their salaries into the pension plan. Currently, the state is the only contributor to the pension, and Scott said that requiring the employee contributions would save the state $2.8 billion over the next two years.

But those on the giving end think it stinks.

via Scott’s pension plan popular with public, not with employees.

About Stephen E. McGaughey
International consultant in economic development programs and projects

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