Pension boost OK'd for Mass.state workers

Overpaid Government Worker has an interesting Boston Globe article:

Massachusetts lawmakers, moving quickly and without debate in the final hours of the legislative session, approved a pension increase for state workers that could cost more than $3 billion over the next 20 years, sparking criticism from fiscal watchdogs who say the state cannot afford such a costly benefit.

The bill, which was strongly backed by unions in the midst of an election year, would increase the annual cost-of-living adjustments by about $120 per year for retired teachers and state employees, helping them afford the spiraling cost of fuel and food, supporters say. But because the number of eligible retirees is so vast - about 100,000 would receive the benefit - the cost could reach $2.7 billion to $3.5 billion by 2026, according to the Massachusetts Taxpayers Foundation, a business-backed fiscal watchdog group.

"There is no money to pay for this enhanced benefit, regardless of the merits," Michael J. Widmer, the foundation's president, said yesterday. "It's another example of the administration and the Legislature passing a benefit and simply passing the buck to a future taxpayer. . . . it's the height of irresponsibility."

You'll want to read the whole article.