Two more articles on the unions/pay/pensions issue

Today, NYT: http://www.nytimes.com/2011/03/02/business/02leonhardt.html?_r=1&scp=2&sq=leonhardt&st=cse .  Summary: it’s not the pay, it’s the pension and disability benefits.  And the work rules. Recently, Fortune/CNN: http://management.fortune.cnn.com/2011/02/28/are-public-unions-our-convenient-economic-scapegoats/?section=magazines_fortune . Summary: the unions are (generally) not the cause. Neither article supports the current moves to strip unions of the right to strike and/or engage in collective bargaining.  

what are reasonable assumptions about long term returns of pension plans?

“…the current [pension] shortfall is attributable to the recent stock market plunge…” Hmm…first of all, the S&P 500 has doubled from its March 2009 low and is now within 40 points of its all time high (1,565 on Oct. 9, 2007).  So we are past the plunge. Second, the problem of poor returns now stretches …

Public Benefit Issue

I appreciate the fact that you have been so involved in this issue as it is one of the largest fiscal issues facing Massachusetts and the rest of the Country. Any reforms in this area however cannot simply be stopping the continued growth of pay and benefits in the public sector but actually reversing them. …

Pension Issues Inventory

Section links are to a proposal for simplification of the pension system (which has been filed as House 2930). House 35 is the Governor’s pension reform proposal. Investment Risk — the possibility that earnings on invested funds will be insufficient to cover costs of future benefits.  Many analysts believe that the earnings available to dollar …

Simplified Pension System Proposal

An Act to make the public pension system simpler and fairer, to provide better income security to lower wage state employees and to protect future taxpayers from unanticipated pension costs (HD 01392) Summary: This bill creates a new pension plan for new public employees designed to improve the income security of lower state employees by …