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July 29, 2011

K-12 Tax & Spending Climate: Popping the Public-Pension Bubble

Ed Ring:

With the day of reckoning approaching for California's lavish but disastrously underfunded public-employee pensions, union partisans have tried to persuade the public that reformers are engaged in "pension busting." But to believe that reformers are waging a partisan vendetta against state workers' pensions would require ignoring a mountain of data. The fact is, only by skewing the averages can the unions maintain that they're victims of a campaign against their "modest" pensions.

The union arguments are deceptively straightforward, rehearsed constantly by their talking heads and, unfortunately, repeated by a sympathetic and innumerate media. A master practitioner is Art Pulaski, chief officer of the AFL-CIO's California Labor Federation. In an online debate at the Sacramento Bee in March (which also included City Journal associate editor Ben Boychuk and frequent City Journal contributor Steven Greenhut), Pulaski claimed that the average pension that California's retired state workers collect is not much more than what they would receive under Social Security. "The average state worker gets a pension of $24,000 and often without Social Security," Pulaski said. "Not lavish by any means." More recently, the Bee published a column by Martha Penry headlined PENSION 'REFORMERS' DISTORT FACTS ON BENEFITS. The paper identified Penry as "a special education teacher's assistant in the Twin Rivers school district," but it didn't disclose that she's also a high-ranking union official who serves on the board of directors of the California School Employees Association. Penry accused "pension busters" of overstating the cost of pensions and the amount of the average pension. "Three quarters of CalPERS retirees collect yearly pensions of $36,000 or less," she claimed.

Posted by Jim Zellmer at July 29, 2011 1:01 AM
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