Why We Ask: Our mission and operations are funded 100% by conservatives like you. Please help us continue to extend Liberty to the next generation and support the 2024 Year-End Campaign today.

April 29, 2014

Playing Dirty on Pensions

Government-employee unions tar those who would resist benefit bankruptcy

Say you saw a car heading down a road that you knew had a bridge out several miles ahead. You wave your arms and shout a warning, trying to avert a terrible accident. How do you think the driver would react?

With gratitude, you’d hope, but you’d at least want the driver to stop and take heed. About the last thing you’d expect is for him to yell angrily, accuse you of lying, then continue to speed down the road.

That’s the way the Laura and John Arnold Foundation must feel these days. For the past few years, they’ve been funding research into the health (or lack thereof, to be more precise) of government-employee pensions. Cash-strapped cities and municipalities are finding it harder and harder to meet their bills. Revenue sources are dropping, and financial obligations are rising.

Detroit filed for bankruptcy last year, in large part because of its underfunded government-employee pensions. According to Moody’s, U.S. states and cities face more than $2 trillion in liabilities for such pensions. They’re forcing governments nationwide to cut services significantly – and raise taxes.

Consider government-employee pensions in California. The average payout for new retirees doubled between 1999 and 2012, according to the Sacramento Bee: “The largest group of state workers is under a ‘2 at 55’ formula.” Under that plan, a government employee retiring at 55 with three decades of service would collect a pension equal to 60 percent of his or her highest salary for the rest of his or her life – with retiree health benefits added on top.

In short, the bridge is out. Something has to be done, but what? The Arnold Foundation has published papers that discuss shifting from a defined-benefit system for pensions, in which your company stipulates how much you’ll be paid, to something closer to a defined-contribution one such as a 401(k), in which what you get depends on what you pay in, or a mix of the two.

Love it or hate it, at least they’re considering possible solutions. They’re trying to find some way to fix that bridge down the road. Their alternatives, they write, “would move plan sponsors toward a financially sound system.” Isn’t that everyone’s goal?

Apparently not. Public-sector unions aren’t content simply with voicing their disagreement with what the Arnold Foundation is proposing. No, they’ve been leaning on groups that accept Arnold funding – such as public television, the Pew Charitable Trusts and the Brookings Institution – to renounce the money. (The Heritage Foundation, which I served as president for 36 years, has never received any Arnold donations.)

According to a recent article in The Wall Street Journal: “The unions argue that the Arnold Foundation is trying to sway public opinion to support replacing public pensions – which give workers including police, firefighters and teachers guaranteed benefits at retirement – with defined-contribution accounts similar to 401(k)s, or hybrid approaches.”

Perhaps I’m missing something, but when did it become out of bounds to try and “sway public opinion” in this country? Isn’t that the whole point of free speech?

How instructive that the unions are reacting this way. It speaks volumes about how much confidence they have in their position that the current pension system is working just fine, thank you very much.

Of course, the current system isn’t just fine, and you can bet the unions know no one can argue with a straight face that it is. Otherwise, that’s what they’d be doing. Instead, they’re resorting to thug tactics, such as intimidation – a smart (if indefensible) move when you don’t have the facts on your side.

The facts plainly indicate that something has to be done. Silencing the Arnold Foundation won’t magically make it so that cities and states won’t have to cut pensions down the road when their financial situation becomes untenable. Just ask the Detroit employees whose pensions are being cut in bankruptcy proceedings.

If the government-employee unions think that the Arnold Foundation is that far off base, I have just one question: What’s their solution?

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the Tunnel to Towers Foundation, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.