Stothert proposed phasing out traditional pensions for city's civilian employees, despite brighter b

[Omaha Steve]

X post in Labor

This is my Local they are dealing with. Since my last day before retiring is Nov. 29th, this doesn't really effect me.

OS

http://www.omaha.com/news/metro/stothert-proposed-phasing-out-traditional-pensions-for-city-s-civilian/article_aa977104-73fc-5d0a-97dc-43c3ddac34a5.html



THE WORLD-HERALD
Mayor Jean Stothert prepares for a press conference inside her office at City Hall on June 11, 2013.


Posted: Wednesday, October 15, 2014 1:00 am

By Roseann Moring / World-Herald staff writer

Mayor Jean Stothert will meet with bond raters this week feeling better than last year about the City of Omaha’s finances.

“Our financial situation is looking very promising now,” she told The World-Herald.

The city’s financial and pension problems are not solved, but Stothert said she can present a convincing case “that we are in good shape.”

Last year, Stothert said bond raters were very concerned with the city’s pension systems and their shortfalls. After meeting with city officials then, Standard & Poor’s dropped the city’s rating, following a downgrade by Moody’s in 2012.

FULL story at link.

[SheilaT]

1. This is scary.

I don't happen to work for any municipal government, but all over the country they are doing their best to shed pension responsibilities, the same way so many private corporations have.

I can also say that I recall reading probably 30 years ago that municipal pensions, teachers pensions, and so on were going to be in serious trouble long term, as even then they weren't being funded properly.

Worst of all, in my opinion, is the way cutting or eliminating these pensions is justified by trying to get the taxpayers to think of them as highly unfair and too much of a good thing for the recipients.

[yallerdawg]

2. Broken promises.

many of these pensions both public and private sector were offered as better security and higher payout than federal Social Security. Many dedicated long-term employees thought they were being offered incentives to stay out of the job market and benefit the employer with retained skill, knowledge and experience.

The contempt shown for labor promises and contracts, and present disregard of workers as an expense on a balance sheet rather than an asset is of course an inevitable function of the capitalist system.

Capitalism will never work for the people. Unless you like crumbs.