The greedy public state union retirees enjoying the benefits of their retirement packages need a wake up call. They, and the current public union employees need to think about their greed.
If states begin to default, Illinois perhaps first, and file bankruptcy they are out from under their pension obligations. That’s a zero pension and a zero benefit package. That’s worst case, there would likely be some negotiation, but it would be severely reduced.
All eyes are on New Jersey where the governor, Chris Christie, is taking this on in 2011. He needs lots of concessions from the public unions, since the unfunded obligations are as much as $115 billion. He has a Democratic congress, but the public opinion is in his favor by 56%. The percentage to do nothing is 36%. Some New Jersey Democrats are seeing the handwriting on the wall and may help Christie get reform.
In other states like Illinois, with a Democratic governor and Democratic congress, they will ride it right to the end of the line. No one is daring to talk to the unions and warn them of the alternatives if they go to the end of the rope. No one is saying some may be better than none or almost none.
Unions pensions and benefits are like anything else in life, excess is destructive, everything in moderation. Years of excess have created a need to go to pension rehab. Giving back anything by unions is never to be considered. But, it’s time. Not just the current workers, new employees, but also the newly retired and long-term retired.
It’s pretty simple, it’s called a cap. All pensions and benefits must be capped. Sacrifices are going to be needed.
To my knowledge, Christie is the only governor taking this on right now. Keep a good watch on his progress. He’s got everything working against him but the public support and a strong will to do what’s right for the state.
