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Posted on August 21, 2013 at 10:26 PM in POLITICS & GOVERNMENT | Permalink
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The answer to all your "why" questions is because that's the deal that was made. You accepted your job and pension knowing it wasn't fully guaranteed. City workers accepted their deal knowing it was constitutionally guaranteed. No changing the deals, either of them, after the game has been played. Your doom and gloom about "all the cities going bankrupt" is silly. It's a few cities, and most had little to do with their pension obligations.
I wouldn't think I'd normally be in agreement with someone called "big banker," but I certainly am on this issue.
August 25, 2013 at 09:43 PM
Res, private union pensions like my AFL-CIO one go belly up every year. Why should I kick in money for people getting many times what I do? We are not protected. Why should public (government) unions be protected? If CalPERS made bad investments and overestimated returns, why should taxpayers (who get much smaller pensions) be the ones who have to pay for these unsustainable payouts? The whole thing is about ready to crash and burn. Look at all the cities going bankrupt because of pensions. This is just the beginning. I hope CalPERS pensioners have prepared for the collapse.
Bobby Hutchinson |
August 25, 2013 at 06:15 PM
The point is that the system has been broken for years. It's a system of greed is good, more is better, and kick the can down the road and pass the buck to the next guy.
Safeway has an underfunded pension system also. But what does Safeway do to pay this? It raises prices.
The bean counters upstairs have this all figured out. You have to raise the cost to pay for the expenses and have a little left over to throw the stockholders in dividends.
The city, county, state, and federal governments (although the Feds have the best system, raise the debt ceiling, and print more money out of the clear blue sky that's based on a promise by to honor this new printed money) just pass the buck to the taxpayers and ask for more more more.
Think about this. I can walk into a store and find yellow onions for five pounds for a dollar. Then I can go to Safeway and Lucky and buy onions for $1.69 a pound. A yellow onion is pretty much a yellow onion, regardless of where you buy it. The store selling them for five pounds for a dollar has to pay rent, electricity, salaries, etc. I know where I am buying my yellow onions.
Think of it this way. You go out and replace a window for someone and tell them that window is $500 to replace. The customer pays you and you finish the job. The customer calls you out to replace another window, but you quote him $750. The windows went up in price and you need a helper this time for this install. The next one goes up to $800. People are going to keep pushing the price up and up till the customer will no longer pay, then bring prices back down or go out of business.
Look at the hourly rate for skilled labor. Has that ever gone down? Have those prices ever gone down? How about plumbers or electricians?
If I were a city employee, I would fight tooth and nail to not let the city lower my pay. Why should I? Everything else is going back up.
The City Council gave these people these contracts. Honor them.
big banker |
August 25, 2013 at 05:52 AM
The people of Pacifica, through their elected officials, made a deal with these workers over the years: In exchange for their work, they would get x, y, z in pension. No man of honor would suggest the city now renege on their promise after receiving the work.
The world has changed and these pensions are no longer being offered. Fine. But we must live up to our promises.
August 24, 2013 at 08:24 PM
We cannot continue to afford this usurious rate for public employees. Pacifica will have to cut jobs or go broke. Residents are struggling as it is to maintain their status quo. Asking us to pay out more so employees can have a pension funded by the taxpayer is too much. It breaks the bank!
August 24, 2013 at 04:22 PM
Ain't gonna happen, Bobby. The taxpayer is on the hook with no risk to the employees. There will be another pension obligation bond coming up soon, and I would bet that much of the projected revenue from the current phone tax being proposed will go straight into salaries and pensions. They simply won't have any choice because of all the fine work done in the past six or seven years.
If we had a newspaper with anyone running it, they would be all over this story, as Pacifica has debt obligations that would scare the bejes$$ out of the public if there were a comparison done as to debt as a percentage of the budget with other communities.
Open government would be very inconvenient at this time.
Lionel Emde |
August 23, 2013 at 06:40 PM
If CalPERS pension investments tank, it should come out of retirees' payments, not taxpayers' pockets. If my IRA tanks, it's on me. Likewise, my AFL-CIO union pension IS in trouble. I am the one who suffers; nobody bails them out.
These government unions took a gamble. High stakes if they won. Huge retirements many times more than what ordinary citizens get from SSI. Well, the bet didn't pay off. Not our fault. Pacifica should not take out another bond to pay this ransom. We already owe $20 million. A BIG mistake by former council. Make sure all future council candidates state loud and clear that they oppose any more bonds to pay CalPERS.
Bobby Hutchinson |
August 23, 2013 at 12:43 PM
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