Employee Unions and Governments are Fully to Blame

February 3, 2011 Leave a comment

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.

Filed under Coral Gables, Florida, Pensions, Taxes and Fees

Let the Coral Gables Unions Beware: Time of Change

January 19, 2011 Leave a comment

This is a Democratic Governor and this is a small sign that the days of out-of-control pensions and public employee unions is coming to an abrupt end.  Let the Coral Gables Commission and Mayor get the message.

The retirement age for Massachusetts state workers would be raised to 67 for new state employees and incentives for early retirement would be eliminated as part of a pension reform package announced by Gov. Deval Patrick.

The proposal, announced Tuesday, would also reduce by 0.5% each the 9% contribution rate for new employees and 11% contribution rate for teachers, according to a news release from Mr. Patrick.

The current retirement age for state employees is 60; current employees’ retirement age would not be affected.

Also included is an anti-spiking rule to limit annual salary increases that would count toward a pension to no more than 7% of the average earnings over the last two years plus inflation.

The proposal would ban elected officials who previously retired as state employees and are receiving a state pension from collecting the pension while in office.

via Massachusetts governor proposes pension reform – Pensions & Investments.

Filed under Coral Gables, Pensions

Jeb has the Solution for Coral Gables: Wake Up Unions!

January 18, 2011 Leave a comment

Dear Commissioners, Unions and Mayor of Coral Gables:  Please read this quote from Jeb Bush.

Jeb is ahead of the others on what to do, and this will be the final result if unions continue with their hardline positions.

There must be found an intermediate solution if the unions will just work with the city and that the public security employees give up making wild claims about there special and indispensable role in the community.

So new Republican governors should adopt rules for countercyclical budgeting and fully funded pensions? Too timid, Mr. Bush says. “I would argue for the elimination of the defined-benefit pension system. Might as well just get right to the end of the conversation, that’s where this is all going.” Then, “figure out a creative way to deal with the unfunded liabilities.” That “means you have to take on the unions.” He notes that New Jersey Gov. Chris Christie has so far “shown that you can take on these entrenched interests and be popular and sustain the efforts to change the state.”

via Jeb Bush: Eliminate ‘defined-benefit pension system’ | Florida Independent: News. Politics. Media.

Filed under Budget, Coral Gables, Pensions

Take Note Coral Gables Commissioners: Unpleasant, but Necessary for the Taxpayers

October 18, 2010 Leave a comment

This is probably hurting the firefighter chiefs and officers more than it is hurting the lower ranks.  The upper limit on retirement is unpleasant, but essential.  It is too bad that firefighter unions were so greedy–they are to blame equally with politicians that get us into this stew.

“It’s a very painful time for us,” said Robert Suarez, president of the Miami Association of Firefighters. “Our firefighters are very upset. We are looking at 20 to 30 percent pay cuts. The attendance of the mayor and commissioners would have created a hostile event out of something that is very positive.”

Firefighter salaries were cut between 5 and 12 percent. But after factoring in cuts to other bonuses for education or specialized jobs, union leaders say the actual cuts are more than double. Pensions were also capped at a $100,000 a year payout. The moves were designed to help close a $105 million city budget hole and avoid laying off one-third of the city’s workforce.

via At union’s request, Miami leaders stay away from new fire station – Miami-Dade – MiamiHerald.com.

Filed under Coral Gables, Miami, Pensions, Taxes and Fees

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