- This Article was Directly Copied from the
Coalition of LA City Unions website -
The Coalition of unions consists of Laborers International Union (LIUNA) Local 777, Service Employees International Union (SEIU) Local 721, American Federation of State, County, & Municipal Employees (AFSCME) Council 36, Los Angeles/Orange County Building & Construction Trades Council, and International Brotherhood of Teamsters Local 911.
What you read below was the Official Position of the Unions until the last few weeks all of a sudden it is completely acceptable, Can you trust such a major flip flop? Can you Say Smoking gun?
Global “Pension Reform” Fury Hits LA
October 28, 2010
The economic downturn has left many private sector workers – who have been forced to rely on risky 401(k) plans and home equity to fund their retirement – with a serious case of “Pension Envy.” Indeed, the gap between what Americans need for retirement and the amount they have saved is a staggering $6.6 trillion according to Retirement USA.
“Pension Envy” turned into “Pension Fury” when it was discovered that top-level public executives like Bell City Manager Robert Rizzo and others are able to retire with budget-busting public pensions – often exceeding $250,000.
Rather than focus on real pension reform, politicians across the country are pushing to slash pensions for new hires to poverty levels. Meanwhile, they are protecting high pensions. Case in point: Even after the public outcry about Bell, Gov. Schwarzenegger vetoed two bills that would have limited pensions and ended spiking!
It is in this context that the City of LA has jumped on the “Pension Reform” bandwagon. No fewer than five competing plans for slashing the pensions of new hires are being pushed by the Mayor, Chief Administrative Officer (CAO), and City Council members. Most of these proposals have one thing in common:
They will leave the average rank-and-file City employee – who has no Social Security benefits to rely on – struggling to survive upon retirement…
Not only is it the hope of some City leaders to create a financial penalty for those who choose to – or are
forced to, through service disability – retire early, but also to reduce the maximum amount one can earn in retirement by 34%.
As if that’s not bad enough, the City is eager to slash retiree healthcare costs by 50% —through the elimination of retiree spouse health-care.
Proposed New LACERS Tier Shifts Costs to Employees
Not only is the proposed new tier a poverty level, work-’til-you-die benefit, but the CAO wants to increase the employee contribution from 7% to 11%. For the average worker, this will leave him or her with little extra money to contribute to our deferred compensation program – a key requirement with a reduced pension and no social security.
Proposed Changes Do Nothing to Help Budget Crisis
This so-called “pension reform” will have NO IMPACT ON THE BUDGET for decades to come. So let’s call this what it is: This is not “pension reform,” these are simply cuts, and cuts that are deep and painful…and do nothing but allow politicians to respond to recession-era hysteria caused by a bad case of “Pension Envy.”