Tuesday, July 23, 2013

SJ Mayor Chuck Reed: Fix Pensions, Fix California

Taking the bull by the horns.
Q: What do you think is the best way to get statewide reform?

A: I think the best way to get reform is going to be a statewide ballot initiative because having seen what the Legislature did, a 5 or 10 percent solution, it doesn’t solve the problem. It certainly hasn’t gone away, although plenty of people have declared victory and hope that everybody will go home.

The problem isn’t going away. I think we can only get it done with a statewide ballot initiative, to make sure we have clear authority to modify future accruals and give employees a choice with a lower cost plan.

The central problem in all of this is the benefits are too expensive, the government can’t afford them and the employees can’t afford them. So we have to be able to modify those future accruals to bring the cost of the benefits down. We don’t have to eliminate them, but we need to be able to modify them.

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