Municipal Bond Forum
Pension reform
Q
Regarding your article, “Pension Reform: A Welcome Sign for Bondholders,” the problem isn’t with pensions per se, it’s including overtime as part of the pension benefit. Police salaries in many California cities run at the $400,000 mark, while base pay is about $100,000. Pensions should be based solely on base pay. We do not need to throw out the baby with the bath water, just reform the system. A cap on pension pay, similar to the max imposed on Social Security benefits, should also be imposed.
A
James A. Klotz responds:
Your point is well taken.
Regardless of how these events occur, these are still problems caused by empty promises from politicians who don’t expect to be in office when taxpayers have to face the music.
Start here.
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