The great inconsistency of GOP political aims: local control except when we want big (state) government ... and probably extract/secure big money from lobbyists.
Can you imagine private sector employers being required to fund the "potential 401k" for every person they hired thirty years (their employment horizon) ahead of time ... well it is not quite that bad but almost. It's sort of like what Congress did to make the "USPS" look bad and claim it was inefficient.
MONDAY, SEPTEMBER 7, 2015
JAKE'S ECONOMIC TA FUNHOUSE
WisGOP trying to bankrupt local gov't through pension "reform"
On this Labor Day, there is a looming bill which offers more proof that Scott Walker's union-busting Act 10 was merely one piece of a much larger agenda. There bill is intended to further hamper the benefits and compensation of public employees, and to force local governments into a choice between not having benefits for their employees and decimating public services in order to fairly compensate such employees.
The proposed legislation is Assembly Bill 269, and it is scheduled to be heard by the Assembly's Urban and Local Affairs Committee tomorrow morning. The state's Legislative Reference Bureau explains the bill as follows:
The proposed legislation is Assembly Bill 269, and it is scheduled to be heard by the Assembly's Urban and Local Affairs Committee tomorrow morning. The state's Legislative Reference Bureau explains the bill as follows:
Currently, cities, villages, towns, counties, school districts, and technical college districts (local governments) provide health care benefits for their employees. Some also provide postretirement health care benefits for their employees.
This bill prohibits a local government from providing health care benefits to any employee hired on or after January 1, 2016, for use upon the employee’s retirement, including compensated absences but excluding the implicit rate subsidy, unless the cost of the benefit is fully funded in a segregated account, based on an actuarial study conducted at least once every four years or other method that complies with generally accepted accounting principles. The bill also provides that, if a local government dissolves a segregated account established for the purpose of providing such health care benefits, the local government must provide for the equitable distribution of the proceeds among the beneficiaries.
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