Wednesday, 1 July 2009

Cut State Pensions

I agree with the Governor’s proposal to cut pensions for workers hired in the future. California pensions are way out of line with the rest of the country, create substantial animosity in the private sector for public employees, are a significant contributor to long-run deficits, and have to be reformed. Yes, it won’t solve next year’s budget crisis and is more of a long-run solution, but we need long-run solutions too. Ideally, we could switch them to a defined contribution (401k type) plan like most of the private sector, but that is unlikely.

About the Author

Ethan Jacob

Author & Editor

I am Ethan Jacob Executive Director of the Center for Business and Policy Research at the University of the Pacific, where I have a joint faculty appointment in the Eberhardt School of Business and the Public Policy Program in the McGeorge School of Law..

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