Earlier this week, noted pension reformer John Moore published “The Mechanics of Pension Reform,” listing specific principles of pension reform. Moore’s article focuses on state policy; he intends to focus on local pension reform policies in a later article. The list he has produced for state legislators is quite detailed; here’s is a partial summary of highlights:
1 – Change control of public employee pension boards to politically neutral private institutions. Currently, government union operatives exert nearly absolute control over California’s 81 state and local government employee pension systems.
2 – Limit the total annual pension contribution by any government entity to a fixed percentage of pension eligible salary.
3 – Differentiate between annual salary and pension eligible salary to lower overall contributions. Stop counting annual wage increases as pension eligible.
4 – Eliminate collective bargaining for government workers.
5 – Prohibit legislative bodies from granting vested contract rights to pensions.
6 – Require agency in-house… Read More