Here is a summary of key areas in the fight to prevent state and local public employee pensions from bankrupting governments. Detroit. Judge Stephen Rhodes will rule today at 10:00 a.m. (EST) on whether the city is eligible to enter bankruptcy. From the LATimes. Most legal experts expect Rhodes to declare that Detroit is eligible for bankruptcy protection. A ruling …
County Pension System Risks vs 401
The U-T has a great article on changes in the portfolio mix of the San Diego County employee pension fund. In 2009, the county fired the fund manager after losses totaling $2 billion in 2008. Assuming that the fund had about $9 billion at the time, that is a loss of 22%, compared withan an S&P loss of 37% for …
Pension Reform Battle Just Heating Up
This is no longer news, but nevertheless important. Carl DeMaio announced that the pension reform initiative had over 145,000 signatures, with 93,346 needed to qualify. It appears likely that the initiative will qualify for the ballot. The furious counterattack by labor on even allowing a vote on the measure has been curious. Clearly they see a huge threat in this …
Weekender Political Roundup
I thought the grocery unions might be on strike at the time of this writing, and they still might by the time you read this. However, a 7:10 p.m. deadline came and went today without a strike. This is great news, and perhaps a strike can be averted. Despite my antipathy for the union position and belief that they will …
401(k) – Better for Workers
Is a promise that won’t be kept really a promise at all? I was thinking about the issue of defined contribution plans (401(k)) vs defined benefit plans for city workers that will be on the ballot in June 2012. The Voice of San Diego summarized the issue neatly: It [the ballot measure] was an agreement to unite and to set …
Applause for Mayor Sanders
I have been a harsh critic of Mayor Sanders at times. But I need to give credit where it is due; he worked with purveyors of competing reform plans to come up with a single ballot measure. This increases the odds that a measure will pass, because there will be a unified reform effort. Yesterday’s U-T has the news: The …
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