No, the parties responsible for under funding are the pension fund officials who don’t require sufficiently large set-asides when pension promises are made — and the politicians who make promises of the public purse without requiring adequate funding up front. The same is true of retiree health care promises, which currently receive small or no set-asides and as a result will impose growing burdens on future government budgets… The victims are those who lose out when current budgets are invaded to make up for past failures to require sufficient set asides.Solving the pension problem requires shared sacrifice, not invective and vitriol. No one is happy that our state now devotes more to retirement benefits than to UC and CSU. Addressing this will require tough choices. But going forward, retirement benefit promises must be adequately funded when the promises are made so that future generations won’t have to divert their funds to meet our promises.

Read full article [here].
by David Crane, The San Jose Mercury News.

Posted: June 4th, 2011, by: admin. Categories: . Awaiting Comments.