The war on pensions
Governor Corbett has made clear he is declaring war on the pensions of public employees. However, let’s remember how this crisis was created. In 2000, the stock market was solid and the teacher pension fund was at about 125% of what was needed to keep the promise of current and future retirees’ pension payments. So, the state and school districts decided to take a gamble and stopped paying into the fund. Teachers never stopped or reduced their amount paid. The handwriting was on the wall. The stock market crashed and now there is crisis.
A former boss once said to me “A failure to plan on your part does not constitute an emergency on my part”. The gamble did not pay off. Public employees should not have to shoulder the burden of the state’s and district’s decision to roll the dice and virtually stop their payments for ten years, some years paying in as low as 1%. Let’s keep the promise made to public employees now and into the future.
Submitted by Virtual Newsroom