Monday, June 22, 2009

BOHICA, Part 24,389

The State's defined-benefit plan is in a pickle.

The solution, of course, is more money from the taxpayer!

The contribution rate for the Wisconsin Retirement System will increase in 2010, with the fund that pays pensions for most teachers and municipal workers in the state increasing to its highest level in more than a decade.

The decision by the Employee Trust Funds Board raises the amount that has to be paid on behalf of employees to the equivalent of 11% of employee salaries. For the current year, that amount is 10.4%.

The Department of Employee Trust Funds attributed the increase to investment losses in 2008.

Well, yah. Investments have been kinda nasty.

Here's the part which is just obnoxious:

The increase largely will burden local governments, most of which have contract agreements requiring them to pay both the full employee and employer contributions to the retirement system.

That line about "preparing for your own retirement" is NOT operative under WEAC and AFSCME-negotiated contracts.


Rep. Mark Gottlieb (R-Port Washington) [is] reviv[ing] calls for passage of legislation that would require most public employees to pay 3% of the pension contributions

Meaning that Gottlieb now has a large target painted on his back.

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