Is Walker trying to raid the unions' pension funds?

[drm604]

This was originally posted by nebenaube in the Wisconsin forum: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=186x32259

http://kristenemery.com/2011/02/23/does-governor-scott-walker-have-a-smoking-gun-buried-in-the-budget-bill

...The main point of the two articles, was that the Wisconsin Retirement System is very close to being 100% funded for current and future retirement benefits.
...
These facts, caused me to ask “Does the Wisconsin retirement plan have excess assets that could be re-captured by the state government if they terminate the plan and replace it with a different type of retirement plan?
...
On to Page Three of Governor Walker’s Budget Bill, third paragraph from the top, there is very interesting language that leads to the very important question for Governor Walker. The paragraph mandates that a study of the existing Wisconsin Retirement System be performed and it must “specifically address establishing a defined contribution plan as an option for WRS participating employees” and the deadline for completing this study is June 30, 2012. I don’t think that Walker would be adding retirement benefits for workers - so I am wondering if the Republican Governors that are trying to get rid of collective bargaining of retirement benefits, so that they can terminate the existing plans and recover excess assets for their state balance sheets.

[EC]

1. Why, yes, yes he is.. n/t

[Starry Messenger]

2. That's the plan.

[trueblue2007]

20. If WALKER steals the union pension money.... HE WILL GO TO JAIL

And in jail.... he will make LOTS of Boyfriends. Bet you 10 bucks he is up to no good

[Starry Messenger]

23. Why would he go to jail?

Kind of depends who gets the money. Pensions have been raided before in this country and I don't remember hearing about extended jail time for it. It's an acceptable Wall Street practice.

[Enthusiast]

26. Besides, we must 'look forward'. nt

[TxVietVet]

3. That's what the greedy Wanker wants to do.

For sure.

[FreakinDJ]

4. It happened before in Calif

Pete Wilson raided CALPers

Former Gov. Pete Wilson took aim at two CalPERS funds with $1.8 billion used to maintain purchasing power for retirees. His legislation took $1.1 billion of the “surplus” to reduce pension contributions by the state, schools and local governments.

http://calpensions.com/2009/04/04/a-kinder-gentler-raid-on-calpers-funds/

[madamesilverspurs]

5. Among other things

-

[Hubert Flottz]

24. He looks a lot like Dave Vitter...

Maybe he shits his diaper too?

[Historic NY]

6. Taking the funds makes things worse ask Jersey......borrowing w/o repaying.

[annabanana]

7. Of course. That pile of other people's money looks like low hanging fruit

to the criminal class.

[AnneD]

8. Every one is so focused on ...

the right to collective bargining and they are missing the other things in the bill...like Walker taking away WI resources (like toll roads, etc) and selling them without input from those legislative cabinet secretaries. He could privitize say the water purification plants and sell it to say the Koch brothers. They borrow against it-take their profit and resell it.

This happened in Argentina Economy and Georgia with the water system.

[drm604]

9. Yes, it's about much more than collective bargaining. n/t

[AnneD]

10. I think if THIS part of the bill came to light.......

Walker would be tarred and feathered even by tea party folks. The Union Bust is a smoke screen. We have to be on guard for this.

[alterfurz]

11. here's some info making the rounds of WI pensioners

Governor Walker is appointing a study group/commission to determine what would be required to make some portion or all ETF (Employee Trust Fund) assets available as a venture capital pool for businesses that want to locate in Wisconsin. The study would determine what legislative changes would be required to remove ETF from employee influence or control.

Venture capital is usually a high risk investment used to fund start-up business, research and product development. The majority of these "ventures" fail and investors lose most, if not all, of their money. Since such investments are extremely high risk, investors are usually limited only to people who can afford to lose them. ETF has the biggest pool of capital (75bil) in the state, and Walker wants to tap it for his business cronies. Such a proposed change would put ETF at risk of insolvency while taking away employee rights to input.

The following email has been circulating around. Take it for what it is worth, but considering the new revelations each day brings, it can't be outright dismissed:
---------------
Dear Fellow Beaver Dam Retirees,

Obviously you know about the ruckus going on at the Capitol. What you may not know about are the plans Governor Walker has for the Pension Fund. In 1968 I was a first-year teacher at Lake Mills and part of a team that put together the first master contract. Kermit Kraig was one of only four resource persons the Wisconsin Education Association had at that time to help all the local unions negotiate such master contract language. Anyway, I got a call from him the other day. He said, "Jim, you need to get involved. This guy, Walker, has a plan ready to go which would dissolve the Employee Trust Fund Board and turn the Pension Fund over to a private manager." No doubt one of those geniuses from a Wall Street hedge fund who brought us the crash of 2008. It is entirely possible once the fund is turned over to a private corporation to manage, they will see fit to "lend" Wisconsin enough to cover any and all of its budget deficit. After throwing an IOU into the pot, they'll assure us they'll pay it back when times are better. Illinois did exactly that some years ago, and recently announced they don't know how they will be able to meet their future pension obligations.

If you think you're safe, and that you don't have a dog in this fight because you are retired, you could be sadly mistaken. And, if you think Walker can't do it because of protective statutes, let me tell you what we were told at the Uniserve office. This question came up and some people familiar with how Scott Walker functioned as Milwaukee County Executive explained how, whenever lawyers told him he could not do something, he invariably said, "Let's do it anyway. By the time it works its way through the courts, we will have achieved our objective and, who knows, we might win."
----------------
Please come to Madison, visit your representatives, write letters to the editor, and participate in this struggle. Don't let Scott Walker take away your hard-earned pension.

[alterfurz]

13. important link to more info

Does the Wisconsin retirement plan have excess assets that could be re-captured by state government if they terminate the plan and replace it with a different type of retirement plan? That's just what Walker may have in mind:

http://kristenemery.com/2011/02/23/does-governor-scott-walker-have-a-smoking-gun-buried-in-the-budget-bill/

[drm604]

18. That's the article I linked to in the OP. n/t

[alterfurz]

25. sorry, I meant to link to a different article and now I've lost it!

[AnneD]

16. Rick Perry tried that same shit here in Texas...

As was his luck, he tried to introduce this right after the stock market pancaked. It didn't even make it out of committee. Everyone saw it for what it was-an attempt to let his cronies after our pension money.

[drm604]

21. Wow.

That's even worse than I thought. I thought he wanted it to directly pay down the state's debt. If there's anything to what you're saying this is really big!

[Hannah Bell]

12. kr.

[TBF]

14. He also wants to cut Medicaid and BadgerCare. nt

[PVnRT]

15. Does shit stink?

[we can do it]

17. The Bastards Want It ALL

[Commie Pinko Dirtbag]

19. What he (and others like him) are actually trying to do is establish as law that...

...everybody not in the Nomenklatura owes them Graham's Number dollars. But they'll settle for a bit less for now.

[drm604]

22. This needs lots of kicks and recs.

This could be very important.

[drm604]

27. Why is this not being discussed?

:kick: