Steven Malanga: State Politicians and the Public Pension Cookie Jar

[Valin]

WSJ: STEVEN MALANGA

6/8/12

 

Scott Walker's victory in Wisconsin should energize efforts around the country to reform one of the biggest perks protected by public-employee unions: retirement benefits, which are piling up to the tune of $3 trillion in unfunded promises to state and local workers. But for reformers to tackle this issue, lawmakers have to overcome one crucial special interest: themselves.

 

Legislators in dozens of states have crafted retirement perks that are even more generous than those of their government employees. As states and municipalities confront the crushing cost of pension promises, these elected officials are being asked to rein in a system they benefit from.

 

(Snip)

 

Given all these advantages, it's not surprising that legislators have been slow to change their states' pension systems. Politically powerful government unions play a major role in keeping state and local pension systems expensive, but legislators often have an even greater interest in the current system—their own generous retirement packages.

[clearvision]

Reform or watch them collapse completely.

[Valin]

Reform or watch them collapse completely.

 

Not that I disagree, but I wonder if people understand the scope of the reform that is needed? It will involve a whole different way of thinking.