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Purveyor

(29,876 posts) Sun Dec 8, 2013, 06:54 PM Dec 2013

Detroit Ruling Opens Threat To NY Worker Pensions

ALBANY, N.Y. (AP) -- A federal bankruptcy court's decision in Detroit last week putting that city's constitutionally protected public pension on the table for cuts cracks the door open for pension reductions in New York.

The concern among unions is that the assurance that New York's public workers have operated under since 1938 - that pensions "shall not be diminished or impaired" - could now be threatened by local governments fighting off insolvency.

"It's a turning point. ... What has been sacred - pensions - are not sacred anymore," said Syracuse Mayor Stephanie Miner, who has been a leader in seeking action to save New York's distressed municipalities from insolvency. That has so far been avoided through higher taxes and layoffs and reducing services.

The Detroit decision could give struggling municipalities leverage in negotiating other concessions to avoid bankruptcy court.

Miner said Albany - where politicians' campaigns benefit greatly from organized labor's money, volunteers and votes - will also have to take notice. She and some other local leaders have long sought far more action from Albany, including relief from unfunded, state-mandated programs.

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http://hosted.ap.org/dynamic/stories/U/US_NYS_FISCAL_CLIFF?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2013-12-08-15-12-15

4 replies

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Detroit Ruling Opens Threat To NY Worker Pensions (Original Post) Purveyor Dec 2013 OP

It threatens all municipal pensions. SheilaT Dec 2013 #1

Detroit is the Prelude to mstinamotorcity2 Dec 2013 #3

This is exactly what the neo-cons wanted. nt okaawhatever Dec 2013 #2

Pensions were systematically being destroyed under Reagan. Rex Dec 2013 #4

SheilaT

(23,156 posts)

1. It threatens all municipal pensions.

Reply to Purveyor (Original post)

Sun Dec 8, 2013, 08:55 PM

Dec 2013

I can recall reading a good thirty years ago that municipal and state pensions were in long-term trouble because almost none of them were adequately funded. Recently that lack of funding is becoming a problem in some places. And in others, like Detroit, other financial shenanigans are being used to cheat the workers.

What also enrages me is to what extent people are being whipped up to be angry about these pensions. Excuse me? The really generous ones are thanks to good union negotiations, and the merely adequate ones are simply part of the employment contract. And no, I am not any kind of a government worker. Except for about six months of a part time job I've always worked in the private sector.

mstinamotorcity2

(1,451 posts)

3. Detroit is the Prelude to

Reply to SheilaT (Reply #1)

Sun Dec 8, 2013, 09:03 PM

Dec 2013

stealing hard working folks money. Peoples homes, jobs, and investments were not enough. They must have it all. This way they have a public that is happy with what ever job they get no matter how little it pays.

okaawhatever

(9,462 posts)

2. This is exactly what the neo-cons wanted. nt

Reply to Purveyor (Original post)

Sun Dec 8, 2013, 09:02 PM

Dec 2013

Rex

(65,616 posts)

4. Pensions were systematically being destroyed under Reagan.

Reply to Purveyor (Original post)

Sun Dec 8, 2013, 09:04 PM

Dec 2013

The 1% knows how important economic terrorism is to keep a populace confused and under control. The Constitution is just a piece of paper to them...worth less to them than the paper money is printed on.

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