State Pensions are Unsustainable, Taxpayers Left with Huge Bill

-By Warner Todd Huston

Once again Bill Zettler has a great piece on the mess that is public employee pensions in Illinois. He makes an extremely relevant point asking the question of why the taxpayers are stuck paying off government worker’s pensions to the tune of billions while the employees themselves only have to pay a measly 8% contribution to their own funds?

In the private sector, Zettler points out, pension contributions by the workers rarely dip below 11% but these government workers are asked to contribute a scant 8% for theirs leaving the taxpayers on the hook for most of the rest of the payouts.

Why is that? Well it’s because pliant politicians that have pockets full of public employee union members donations have fixed the contributions at the low 8% level. This needs to change.

Zettler has a whole list of changes to pensions and these are changes that many state, not just Illinois, should consider.

Of course, all these changes will be fought tooth and nail by the public employee unions like SEIU and AFSCME. If they are against it, though, you can be sure it is a good idea.

Click on over to Zettler’s piece and check out his prescriptions to cure the pension mess.

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