Pension Plan Pay Cut

by: Dan Sullivan

Sun Dec 12, 2010 at 11:36:33 AM EST

Really, that is what the sea-change to the state pension plan portends. It is also part and parcel of another Republican Ponzi scheme. The brilliant idea to go into debt to build highways is another. Oh, and selling off revenue generating assets for a one time "windfall" without a strategic plan to replace the recurring revenues is one too. There is a clear pattern here: make promises someone else will pay for. Jim Gilmore redux.

"The legislature also is likely to discuss whether to offer state employees the option of contributing to a 401(k) plan they can manage themselves instead of a defined-benefit plan run by the state." as reported in today's Richmond Times Dispatch

Delegate Chris Jones (R-76th) says he is disappointed that localities decided to pay the new employee share of the defined-benefit plan cost. What would he say if they hadn't paid and the employees rose up? That it was a local decision and he is disappointed that localities hadn't fulfilled their obligations to employees? There's your savvy political posturing. It isn't as though we have the highest paid teachers in America and aren't competing with other states and within the state for the best.

"It's going to make it that much harder to get good people in the classroom," said Robley S. Jones, lobbyist for the Virginia Education Association

That underfunding is okay, however, if we change the entire retirement system so that all employees are required to make contributions. Those contributions will make up for the shortfall, at least for his term in this office, and maybe long enough for him to fulfill aspirations for higher office where he can extrapolate his malfeasance.

A fellow who has degrees from both Notre Dame and Regent University has to be familiar with the concept of robbing Peter to pay Paul. Or does he? You see, there a whole lot more to finance than you glean from management courses or is offered in a law school; even an accredited one. So maybe McDonnell just doesn't understand that a one-time bonus for state employees justified by raiding their retirement plan isn't going to make up for the long-term net pay reduction his lackeys are about to render in the name of fiscal responsibility. Or maybe Peter and Paul will both be dealt with by Ponzi.

McDonnell said he created a work group several months ago to consider pension options. He cited concerns about unfunded, long-term liabilities; the increasing number of employees retiring; and the potential for big increases in employer contribution rates next year.

"The numbers just don't add up," he said.

No, Governor, yours never do.