Cut Executive Pensions to Make Funds Solvent
The Associated Press, on 12/29/2010, posted this news: Top executives at the University of California are threatening to sue if employees earning more than $245,000 annually do not receive a major pension hike. Agreeing to the hike would add $5.5 million yearly to the UC’s already $21.6 billion-unfunded pension liability. It also would have to pay a one-time $51 million to make the increases retroactive to 2007 when the IRS rescinded the limit.
So someone retiring at age 62 with 30 years of service would get close to 65 percent of pay, or $150,000 per year with a 30-year life expectancy, nearly $4 million each. So, you see where our tax dollars and student fees go.
It’s the executives, who set up these benefit packages, that benefit most from them. These pension contracts are a scam! They are unfair to the tax payer and consumer. They need to be re-negotiated.
Rather than cut teachers, firemen, nurses, and other service providers we should “means test” public employee pension benefits so that those retirees who get more, give back more. If and when the fund becomes “solvent,” these high-income retirees can once again get their full benefits. A little less of something is better than a lot more of nothing.
Contact you legislator to urge “means testing” benefits.