Monday, November 29, 2010

Public employee pensions--We can't afford them

In this article in the Review Journal, it states,
If there's one good government idea out there, it's the concept of moving public workers from anachronistic defined-benefit plans to modern 401(k)-style retirement plans.

This is a good idea. In fact, it is something that the IAP working on getting passed in the 2011 legislative session.

The article also states,
Defined-benefit plans stem from a bad moment in time in which employers -- and now unions -- cared for employees like children incapable of planning for their own retirements. Over time, these plans metastasized into grotesque shadows of their initial good intention.

We have to face facts. We cannot avoid this type of public pension plans. In fact, we should also require that all politicians be part of the public pension plan. They should not be able to vote on something that affects everyone but them.

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