Tuesday, September 28, 2010

Opinion: Let's reform state government

Opinion: Let's reform state government - Frank J. Donatelli - POLITICO.com
"Here are some major reforms these state policymakers could pass immediately:

Public pension reform.
State liabilities for pension funds have reached an astounding $5.2 trillion, with an additional $3 trillion shortfall.
Many states provide inflation-protected, guaranteed benefits to government workers who retire as early as age 55.
However, private-sector workers, who pay for this, have not done so well.
Millions have lost jobs, and virtually all have seen their 401(k)’s shrink.

We need some tough reforms to control public pension costs, including changing the defined-benefit plans into defined-contribution plans, barring part-time government workers from receiving full benefits and ensuring that all enrollees contribute to their own retirement and health care plans.

Republicans should follow the courageous example of New Jersey Gov. Chris Christie, who is seeking to bring these soaring costs under control."

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