Weekly News – Dec. 19, 2013

Cheaper pensions: how the math works for employees
This article is a very educational and interesting read about different types of pension plans currently being discussed for many public employees. Of particular interest is the discussion of why public employee unions might be willing to accept smaller pensions. Tradeoffs like smaller contributions and portability are worth it to many people, especially for younger workers who could use extra money in their paychecks and want to keep the door open to career changes down the line.

St. Petersburg firefighters being paid for time not worked
Due to some quirks of the local shift-swapping rules, firefighters in St. Petersburg, Fl. have been legally able to swap, barter and sell thousands of hours of time while not having any change in their pay and benefits from the city. The department says it’s a private matter between firefighters and there’s no harm done, since the hours are being worked and taxpayers are not being charged extra. But city officials worry that the practice is open to abuse and an invitation to tax fraud.

Scott Walker open to limiting collective bargaining for public safety employees
Much-maligned Wisconsin Governor Scott Walker recently said that he would be willing to consider changing his line on public safety unions. Previously, he had exempted police and firefighters from his anti-union laws for fear of compromising public safety if those organizations went on strike or took other actions. Walker says that since “the world didn’t come to an end” for the employees whose bargaining rights were stripped, there might be a “greater opening going forward” for removing those bargaining rights from public safety workers as well.

Pension board vote will force Pittsburgh to increase pension contribution
A vote to decrease projected returns by one half of one percent doesn’t seem like a very interesting story, but it’s turned into a heated debate in Pittsburgh. The decrease will require the city to contribute an additional $5 million annually. In an unusual turn of events, the Mayor, who had consistently been against lowering projections, made an about-face and voted to lower it. Some suspect that Mayor Ravenstahl changed his vote solely to make things more difficult for incoming Mayor-elect Bill Peduto. (The really sad part is that politicians making laws solely to annoy each other over petty grievances no longer surprises us.)

Pension cuts in an era of robber barons
This editorial by the president of the Chicago Teacher’s Union is a fiery shot across the bow to local legislators. She heavily criticizes recent decisions to slash pensions and close schools, as well as pointing out the hypocrisy of giving tax breaks to corporations on the same day that they voted to cut benefits for retirees.