Wednesday, February 23, 2011
What public-sector unions have wrought
One way or another, government employees must be weaned from their exorbitant defined-benefit pension plans. Those plans should be closed completely to new employees and frozen for current employees. Already-vested benefits cannot be touched, but all retirement benefits going forward ought to be accrued within a defined-contribution plan requiring employee contributions. Without depriving employees of any benefits they have earned to date, governments have to be able to amend the terms on which future benefits are earned. Tens of millions of Americans working in the private sector—including many belonging to labor unions—know from first-hand experience that the terms and conditions...
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