From Wapo article today:
AMONG THE consequences of the novel coronavirus and associated economic distress has been a reemergence of state public-employee pension liabilities as a political issue. The financial crunch facing systems across the country is likely to prove even more difficult than the one brought on by the 2008-2009 recession, as pension contributions once again compete with current needs such as schools and public safety for increasingly scarce state dollars.
Which brings us to California, and the California Supreme Court. The seven-justice panel heard arguments Tuesday in a case that will determine the viability of a 2012 pension reform law enacted by a Democratic legislature at the urging of then-Gov. Jerry Brown, also a Democrat. The financial savings were, to be sure, modest: $28 billion to $38 billion over 30 years for the $300 billion-plus California Public Employees’ Retirement System, and $22.7 billion for the $200 billion-plus state’s teacher pension fund. Yet the bill was important just the same, because it banned egregious “pension-spiking” practices such as running up overtime just before retirement or allowing public employees to hoard their last few years’ of unused vacation and sick leave, then exchange them for higher pension benefits.
“Public services are being cut across California, some jurisdictions have already announced layoffs and furloughs of public employees and many counties and cities are struggling to pay for their pension liabilities,” he said. “The question presented by this case is whether on top of legitimate pension liability, should taxpayers along with their children and even grandchildren, be forced to also shoulder the burden of financing abusive practices to artificially and unlawfully inflate pensions.”
So they are basically discussing a court case in CA concerning pensions. I would think this would not apply retroactively to people receiving pensions based on previous rules before the reform.
However, the point is - look at who is being attacked here - people who were "allowed to hoard their sick leave" etc to trade it in for years of service.
And if we have another depression - worse than the previous one as WaPo is also predicting, how will things be handled with those in the media castigating people who earned legitimate pensions. When the State doesn't have sufficient taxes to fund all their programs - and the media claims pensions are "unfair" what will happen?
And if you think that is not possible - who would have thought that someone could be arrested for being alone on the beach?
And yes, I am a Federal retiree and DH is a military retiree - if the Feds run out of money - we could be at risk as well.
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