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Every once in a while government does the right thing, the honest thing.
"Ignoring a plea from the largest state worker union, the CalPERS board adopted a new policy last week allowing the state to get immediate savings from new contracts boosting worker pension payments.
Under the old policy it would have been fiscal 2012-13 before the state got the savings.
CalPERS said in a news release last week that the policy change could allow the state to save up to $500 million this fiscal year, if all of the unions agree to pay more toward their pensions."
Of course the unions are upset; they prefer to get all their benefits, while millions in the private sector are struggling to pay their taxes and bills.
Even with this, the State will still be short of funds for the pension plan. "Although the news release did not mention it, the savings would offset a $600 million increase this year in the state payment to the California Public Employees Retirement System, up 18 percent from $3.3 billion to $3.9 billion."
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"Ignoring a plea from the largest state worker union, the CalPERS board adopted a new policy last week allowing the state to get immediate savings from new contracts boosting worker pension payments.
Under the old policy it would have been fiscal 2012-13 before the state got the savings.
CalPERS said in a news release last week that the policy change could allow the state to save up to $500 million this fiscal year, if all of the unions agree to pay more toward their pensions."
Of course the unions are upset; they prefer to get all their benefits, while millions in the private sector are struggling to pay their taxes and bills.
Even with this, the State will still be short of funds for the pension plan. "Although the news release did not mention it, the savings would offset a $600 million increase this year in the state payment to the California Public Employees Retirement System, up 18 percent from $3.3 billion to $3.9 billion."
More...