Public Pensions: What to Expect in 2013

Thor's Assistant Rostra Administrator (Thor's Assistant)

Courtesy of the San Diego County Taxpayers Association The San Diego County Taxpayers Association (SDCTA) is keeping a close eye on several significant changes to public employee pensions expected to impact state and local governments starting next year. Several stem from Assembly Bill 340, or “Public Employees’ Pension Reform Act of 2013.” The bill, recently signed by Governor Jerry Brown, impacts new …

DeMaio Unveils Plan to End DROP “Double Dipping” in Pension System

Carl DeMaio Carl DeMaio

Councilmember Carl DeMaio, one of the primary authors of the Prop B Comprehensive Pension Reform (CPR) Initiative, today unveiled another sweeping pension reform proposal to end the notorious DROP Program in the city’s pension system. The DROP Program allows city employees to retire in place and retain their jobs for up to five years – resulting in a “double dipping” …

How 401-k plans can approach zero annual administrative cost

Richard Rider, Chairman, San Diego Tax Fighters Undesignated

One common labor union objection to defined contribution pension plans (401-k plans) is that the administration costs are “1%-3%” annually. They assert that it’s much less expensive to let CalPERS or other “experts” manage a huge pooled account. And indeed that high 1-3% individual account annual cost would be a major impediment. IF it were true. It’s not. Not if …

Top 10 IMPLICIT fallacies justifying opulent government pensions

Richard Rider, Chairman, San Diego Tax Fighters Richard Rider, Chairman, San Diego Tax Fighters

There are many, many fallacies in the sometimes explicit but often IMPLICIT reasons given for paying out great government pensions. Here’s my selection for the top ten excuses: 1. “Public employees deserve high pensions because they work for low wages.” FALSE. Perhaps true at one time, but not any more. In many instances, today’s government employee is earning 10%-30% more …