The defined benefits retirement fear mongering...'a shabby political tactic'

From John Curry, October 24, 2010

Note from John....take some time to see who these defined benefits retirement fear mongers are - the politicians who want to replace our defined benefits retirement plan with a defined contributions retirement plan....check out their names, their organizations, their campaign contributors and their political affiliations........I think you'll find a pattern when you do....I DID!

http://www.gainesville.com/article/20101021/NEWS/101029857/1109/sports?Title=Raymond-Edmondson-Jr-Critics-mislead-on-public-pension-costs

Raymond Edmondson, Jr.: Critics mislead on public pension costs

Gainesville.com, October 21, 2010

Conservative tax-watchdogs are inciting voter anger this election cycle and promoting the idea that more public employees ought to join the ranks of private sector unfortunates who have lost jobs and benefits since the 2008 crash.

Special interest groups, including the Florida League of Cities, are misleading the public about the cost of public pension benefits, all the while feeding taxpayers’ fears that public pensions are unsustainable. They are not.

Public pension critics want taxpayers to get bailout relief from their responsibility to finance municipal services and benefits. They also want public employees to trade defined benefit pensions for defined contribution, 401(k) accounts. Sounds good to angry voters, but public employees experience the same pain as private workers when jobs or benefits are cut, and retirement security is denied.

Critics point to unfunded liabilities to bolster arguments that public pensions are unsustainable. The fact is that public pension funds suffer just like private 401(k) accounts do in a down market, but they will recover and current unfunded liabilities will shrink commensurately. Voters should be told that as much as 70 percent of pension benefit payouts come from earnings on the fund, and payout cycles average at least 30-years.

Public pension plans work in perpetuity; always drawing upon the participation and contributions of new hires that will support the plans for decades, which is a surety that 401(k) accounts cannot achieve. Fear mongering is a shabby political tactic. Defined benefit pensions are both efficient and sustainable. Visit www.fppta.org to learn the facts.

Raymond Edmondson, Jr., CPPT, CEO ,
Florida Public Pension Trustees Association