Quote:
Originally Posted by CliffFletcher
I don't see a lot of people advocating removing public sector pensions altogether. But they have to be sustainable. It's all well and good to promise a comfortable pension from age 56 to 90. But what happens if payouts continue to rise faster than contributions? If pensions bankrupt the municipality?
If I were a member of a public sector union, I'd prefer a modest rollback of the plan to finding out at 63 that the system is not sustainable and I'll have to accept 25 cents on the dollar or take nothing. The Boomers are going to leave a smouldering wreck of a many pensions and other entitlements.
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I'm not arguing that pensions are financially responsible or sustainable. For the record I largely agree with your stance.
The only point I'm making is that pensions are one of the few incentives that will attract quality talent to the public sector. If the city destroys or diminishes the pensions, they will have to introduce other forms of compensation to stay competitive during the economic cycles.