Like it or not these pensions are already legal obligations of state and local governments. Yell about or at the unions all you want, but if these obligations are not met, get ready for lawsuits and negative consequences for municipal credit ratings. Would you rather pay somewhat higher taxes now to cover pension obligations, or significantly higher taxes later because of the higher muni bond rates your state will have to deal with when the problem worsens (or your state is forced into bankruptcy)?
This is not just a problem of public employees or their unions. You are on the hook for these payments and will remain on the hook even if starting today everyone had a defined-contribution plan. Yes, this is your problem too.
This is not just a problem of public employees or their unions. You are on the hook for these payments and will remain on the hook even if starting today everyone had a defined-contribution plan. Yes, this is your problem too.