Study: Hybrid pension plans would save billions

[Omaha Steve]

http://www.omaha.com/article/20110813/AP09/307189906

By JUDY LIN

Published Saturday August 13, 2011

SACRAMENTO, Calif. (AP) - A study released Friday by a pension-reform group suggests California state and local governments could save billions of dollars a year by moving to a hybrid retirement plan similar to one used by the federal government.

The study by California Foundation for Fiscal Responsibility found the savings could be even greater if public employees who take early retirement contributed up to half the cost of their retiree health care premiums.

The authors looked at potential savings if state and local governments reduced guaranteed pension benefits by half and replaced them with a system similar to the 401(k) plans prevalent in the private sector.

"Our analysis shows that substantial savings can be achieved if the state and local governments provide retirement benefits comparable to those offered by the federal government and share cost and risk with their employees just as the federal government and private companies do," Mike Genest, an author of the study and former state finance director under former Gov. Arnold Schwarzenegger, said in a statement.

A group supported by public employee unions criticized the report and said it was bankrolled by Texas billionaire John Arnold, a former Enron Corp. trader who made his fortune buying and selling natural gas.

"Whether it's been T. Boone Pickens or Valero, California voters have never taken kindly to out-of-state special interests or billionaires trying to influence our state's public policy," said Steve Maviglio, a spokesman for Californians for Retirement Security.

FULL story at link.

[mrdmk]

1. Ha, excellent! The good people who were promised pensions do not have to pay

and the terrible people who accepted the pensions as incentive to take the job do not have to retire.

Works for everyone. Lets hear someone complain!!!