Unions in California Want More

Steve Greenhut explains why public sector union members are a special elite class:

If you work in the private sector, you most likely receive a defined- contribution plan, in which the employer provides a certain percentage of dollars in your account. How much you have at retirement depends on various factors, such as how well the stock market has performed.

California public-sector employees have defined-benefit plans. You, the taxpayer, guarantee a certain amount of pay for each employee, until death does he part. Public-safety employees, whose salaries often reach six figures, receive pensions of 90 percent to 100 percent of their final pay after working for 30 years. Many retire as young as 50, and then go on to another well-paid job at another public agency.

Any wonder why the state budget is busted?

Last year, Orange County supervisors spiked pensions for county workers by more than 60 percent, and provided the benefits retroactively, thus granting an immediate windfall to employees already nearing retirement age. Non-safety employees can now retire at age 55 with 81 percent of their final pay, for life, guaranteed.

Never mind that the county already was $1 billion short in its ability to cover those pensions. This is happening everywhere.

If you work in the private sector do you get to retire at 50? Your tax increase is their retirement plan.As we say here often,do you really want to be long California muni bonds for the long haul??