Yesterday Mayor Bloomberg finally took on the unions to put a stop to a practice that has been crippling pension systems around the country. For years, public workers have been racking up overtime pay just before retirement in order to boost their annual payout under their tax-payer funded pension plan.
I am not one to bash police officers, firefighters, or teachers for their hard and courageous work, but the current pension system that sees them contribute little and take a lot is not only unfair, it is causing a major crisis in New York, California and other states. Under the current system, most employees contribute only 1.85% in their latter years after staring at 4.85%. Bloomberg is proposing that civilian employees and teachers must contribute 5% every year.
There are many issues that need addressing with the bloated pension system. For more, watch my first video rant of 2011.
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