- Federal, State and Local Governments and Public Sector Labor Unions
- United States of America
ONLY AS ONE EXAMPLE, New York State Teachers Union Pension Plans are based on annual growth of 8% of pension fund investments.
Investment markets are volatile.
Investment funds are not yielding the required gain.
Many US States face large deficits in pension funds.
See a recent article on California's Pension Crisis here:
http://tinyurl.com/yg9tslf - Source is The San Francisco Chronicle
See an article on New York's Pension Crisis here;
http://tinyurl.com/yfwo7nh - Source is Bloomberg.com
See a comprehensive view of pension plans compared to 401K plan options here;
One great example of policy review can be found at http://tinyurl.com/yh3zpg7
- Source is The Empire Center fo rNEw York State Policy.
Tax payers are pressed to make up the annual shortfalls in pension funds across the nation through tax increases.
In short, the existing model is antiquated and unsustainable.
Contractual agreements with employees, union members and elected officials at all levels must be revisited and pension plan changes must be made.
Doing so can have immediate and long-term benefits to local, state and national economies by providing fast tax relief and a sustainable model for retirement plans.
Measures would also result in more personal flexibility and a better guarantee of long-term financial stability for pension plan recipients by enabling them to roll investments to other 401K plans or IRA accounts if they change jobs and reduce the risk of underfunded pension programs now and in the future.
Options to consider may include;
1. Existing pension recipients have no change in their current pension plan model.
2. People eligible to retire now must do so in order to retain the current pension plan.
3. Those who are not eligible for retirement or who choose not to retire at this time will have their vested interest in existing pension programs converted to a cash-based tax deferred retirement plan whereby the employee determines their degree of future participation and chooses investment options according to personal preference.
4. All aspects of redefined public sector retirement plans would be based on the same standards as those seen in privately held and publicly traded business sectors with regard to law, investment options and investment returns.
We, the undersigned, call to the United States Federal Government, all 50 United States' governments, and all public sector employees and public sector Labor Unions to take immediate and swift action to convert Pension Programs to a 401K investment model to make them cost effective and sustainable.
We understand that doing so can have both immediate and long-term benefits to US Economy as a whole by providing Fast Tax Relief to all tax payers and a Better Guarantee of long-term financial stability for pension plan recipients as compared to the existing under-funded and unsustainable models.
The Tax Relief through Pension Plan Conversion to 401K petition to Federal, State and Local Governments and Public Sector Labor Unions was written by Citizen LienOnMeNY and is in the category Miscellaneous at GoPetition.