I wrote a few weeks ago about the coming municipal (and other) pension morass, which some of Colorado’s elected officials seem intent on denying. My point was simple: in coming years benefits are going to be reduced, and/or contributions raised.
Turns out we did not have to wait years, just weeks. I think we can fairly say the following will be just the first act, but we’ll have to wait to see if it is tragedy or comedy.
Teachers and other public employees, and PERA, take note:
ALBANY — Gov. David A. Paterson and the state’s public employee unions announced on Friday that they had agreed to a deal to limit pension benefits for future public employees in an attempt to control the state’s ballooning costs for retirees. […]
For future employees, the retirement age will rise to 62 from 55, and they will have to contribute 3 percent of their own salaries to their pensions for their entire careers, instead of the current requirement that they contribute for their first decade of service.
New workers will not vest in the pension plan until they reach 10 years of service, instead of the current five. The deal will also limit the amount of overtime that employees can use in their last years of work to increase their pension benefits.