Pension Reform: Villaraigosa v. Riordan
10.29.2012
JACK HUMPHREVILLE
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LA WATCHDOG - The Riordan Plan for pension reform will be the defining issue in the City’s upcoming elections in March and May.
That is why we must demand a simple “YES” or “NO” answer from all the candidates for Mayor, Controller, City Attorney, and the City Council as to whether or not they support Mayor Riordan’s ballot measure to reform the City’s busted pension plans.
One thing is for certain. We cannot trust any promises of our Elected Elite to reform the City’s pension system, especially once they are cornered in the bowels of City Hall by the campaign funding leadership of the City’s public labor unions.
Our current pension system is an unmitigated disaster that threatens the City’s very solvency.
Since 2005 when Mayor Villaraigosa took office, the value of future benefits for the City’s two pension plans has escalated 40% to over $35 billion, an increase of $10 billion. As a result, the two plans are only 72% funded and are underfunded by $10 billion.
By 2017, pension contributions are expected to be $1.3 billion, devouring 26% of General Fund revenue ....................
http://www.citywatchla.com/lead-stories/3983-pension-reform-villaraigosa-v-riordan