NJ passes Public worker Benefit Reform

[senseamp]

This is going to end up in the courts for sure. The cost of living adjustment provision is robbery through inflation.

 

[CLite]

This is going to end up in the courts for sure. The cost of living adjustment provision is robbery through inflation.

The cost of living adjustments can go up when the fund is solvent. To me it seems more criminal to drive the fund to insolvency and then people get nothing.

How can you logically look at a piece of legislation desperately trying to restore the solvency of the pension fund and call it robbery?

 

[senseamp]

The cost of living adjustments can go up when the fund is solvent. To me it seems more criminal to drive the fund to insolvency and then people get nothing.

How can you logically look at a piece of legislation desperately trying to restore the solvency of the pension fund and call it robbery?

Depends on whether the wording of previous legally binding contracts requires the state to adjust for the cost of living. We are talking about 29 years without cost of living adjustments. A dollar in 2011 is worth only 43% of what it was worth in 1981. So yes, it's a robbery that takes 57% of someone's pension.

 

[ProfJohn]

Your two posts in this thread have been pathetic and petty. Go back to posting about Sarah Palin if you don't feel like contributing to the discussion on progress in NJ.

Hey, I am on your side.

If we don't fix these problems now we are going to turn into Greece down the road.

Eventually the people working for a living will stop wanting to support the people not working and when that happens we will have a huge mess on our hands.

Better to fix it now before it becomes too late.

 

[CLite]

Depends on whether the wording of previous legally binding contracts requires the state to adjust for the cost of living. We are talking about 29 years without cost of living adjustments. A dollar in 2011 is worth only 43% of what it was worth in 1981. So yes, it's a robbery that takes 57% of someone's pension.

The standard of living would be re-instated if the fund became solvent before 2040.

Again, my question is how is a 57% reduction in someone's pension more criminal than the complete elimination of a pension through insolvency? The fact is we lived in an opulence driven by debt, I think everyone (both public/private sector) is going to be in for a general decrease in his/her standard of living.

 

[senseamp]

The standard of living would be re-instated if the fund became solvent before 2040.

Again, my question is how is a 57% reduction in someone's pension more criminal than the complete elimination of a pension through insolvency? The fact is we lived in an opulence driven by debt, I think everyone (both public/private sector) is going to be in for a general decrease in his/her standard of living.

If NJ made legally binding obligations to retirees, they can't unilaterally change them outside of bankruptcy court.

 

[CLite]

If NJ made legally binding obligations to retirees, they can't unilaterally change them outside of bankruptcy court.

OK, so you think the public union would sue to force NJ to go through bankruptcy which would void all the contracts and result in a credit rating decrease which would force NJ to pay higher interest rates. I.E. it would royally fuck NJ and the public unions.

If the public unions are so incredibly stupid as that, then they deserve to make minimum wage.