Pension cost explosion – When City Councils don’t understand the financials

The link takes you to an article detailing the pension costs in the City of El Monte, where 38% of the City’s General Fund budget goes to paying for pension costs. it also describes a broken system where one group gets a pension enhancement, and this is then used by other groups to lobby for the same. Oftentimes the City Councils that are being ‘sold’ these justifications don’t understand the cost implications of what they’re voting on. Even worse, many of these budget-busting proposals for pension sweeteners are approved unopposed by voters who are understandably confused by the proposals and unclear as to the ruinous cost implications.

Whenever the tax paying public hears politicians or union leaders using the justification of “we need to keep and attract the best”, or “our pay and/or benefits are not competitive…”, watch out. Lets be clear. Our public employees, including safety personnel are RICHLY rewarded as it currently stands.

http://www.latimes.com/projects/la-me-el-monte-pensions/

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