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Finally, California pensions are bringing down so many cities that can no longer afford pension payments. Fresno pays more than 10% of revenues just for pension contributions. LA and San Fran will shortly hit the 25% mark.
"For decades, union officials have repeated the mantra that government agencies can’t modify or reduce pension benefits without violating the constitutional prohibition against impairment of contracts.
But a growing number of legal experts say public agencies may have far more latitude to change retirement benefits – especially future benefits earned by current employees – than once commonly believed.
“We’ve looked at the case law very carefully and our view is very different than the so-called talking heads – be they politicians, union leaders or whatever,” says Jeff Chang, an attorney at Chang, Ruthenberg & Long, a Folsom-based firm that is advising government agencies throughout the state about their legal options to reduce pension costs. “The case law is much more ambiguous and refined. It’s not nearly as black and white.”
If pensions are not cut, cops, teachers and firefighters will be.
The choice is ours--unions that mandate bribes from decent people, extortion, if ended, would also be a big step toward economic recovery.
More...
"For decades, union officials have repeated the mantra that government agencies can’t modify or reduce pension benefits without violating the constitutional prohibition against impairment of contracts.
But a growing number of legal experts say public agencies may have far more latitude to change retirement benefits – especially future benefits earned by current employees – than once commonly believed.
“We’ve looked at the case law very carefully and our view is very different than the so-called talking heads – be they politicians, union leaders or whatever,” says Jeff Chang, an attorney at Chang, Ruthenberg & Long, a Folsom-based firm that is advising government agencies throughout the state about their legal options to reduce pension costs. “The case law is much more ambiguous and refined. It’s not nearly as black and white.”
If pensions are not cut, cops, teachers and firefighters will be.
The choice is ours--unions that mandate bribes from decent people, extortion, if ended, would also be a big step toward economic recovery.
More...