California Death By Pensions

The Full Article Can Be Read At:

https://calwatchdog.com/2015/06/25/ca-pension-reformers-push-ballot-measure/

“The cost of government has not declined, nor have continuing budget imbalances made cities, counties, and school districts any more efficient. Rising pension expenditures have left taxpayers in the position of having to, in effect, pay more for past government services while getting less and less in the way of current services.”

Dramatic changes envisioned

But the simplicity of the approach would lead to potentially dramatic changes in the way California handles the existence of pensions, not just the creeping increases that have long been associated with them. “If the proposed ‘Voter Empowerment Act’ qualifies for the ballot and voters approve it in November 2016, cities across California would need voter approval to continue offering pensions beyond 2019. Otherwise, they would have to offer new employees 401(k)-style plans like those available from private employers,” according to the Mercury News.

In a remarkable provision, a second layer of protection would be added against reversion to the current system. “The initiative also would require voter approval for government employers to pay more than half of the total cost of retirement benefits,” the Mercury News continued. “And it would prohibit government officials from challenging any voter-approved state or local ballot measures regarding compensation and retirement benefits.”