Thursday, May 26, 2011

Here Comes the Pension Bill: Devilish Details, Part I

Rich Miller at notes the following (which didn't get by me but is lost in the fire burning over this issue):

"The media has completely ignored this aspect of the plan, and it’s buried way down in the SJ-R story today…
The Tier 1 contribution rates are subject to revision after the first three years and every three years thereafter. If the contributions become too burdensome, an employee can move down to Tier 2 or Tier 3 but never back up.
In other words, those numbers you see above aren’t final by any means. The contributions will automatically be recalculated every three years, and those contributions could very well be recalculated upwards as people leave the system. That scenario is a huge political nightmare for many, many legislators." (bold added for emphasis)

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