Villaraigosa calls for pension reform

Well, maybe. L.A.'s mayor is proposing a rollback in benefits and an increase in the retirement age for civilian city workers, the LAT's David Zahniser reports. However, the changes would only seem to apply to new hires, which wouldn't do all that much to stem the underfunding of pension benefits for current employees (or those who have already retired). Last week, the Little Hoover Commission issued a report that called for rollbacks in the benefits of current employees - a very difficult proposition both politically and legally.

City Councilman Paul Koretz, a close ally of public employee unions, worried that some of the mayor's proposals might be "too dramatic." Koretz said the proposal would do little to cut retirement costs in the short term, since much of it would apply to new hires rather than existing workers. "It's not going to solve the problem the city is currently facing," he said. "It will help the generation after the next generation."

Oh, I get it: Since none of the reforms will do much good anyway, let's not even bother trying to fix the system. It's enough to make you scream - this is why very little is likely to change unless and until the city is faced with a financial Mayday that will make change not only necessary but required. By then, of course, you might have a much smaller police force and fire department.


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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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