In my prior post, I pointed out that because San Francisco requires a public referendum for pension changes, the types of deal-in-the-dark pension privileges that have been handed out, in New York and elsewhere, hadn't happened there. But a tip came from the Pension Tsunami folks that perhaps San Francisco isn't so great on generational equity issues after all. That city (like our city) has a huge retiree health care liability, due a provision that allows employees to retire after just five years and receive free health care for life. And to reduce it, the politicians and unions have cooked a scheme worthy of the New York State Legislature.
Under a proposed referendum, future public employees would receive drastically lower retiree health benefits, and for going along with it current public employees (the ones whose existing deal caused the problem) would get a massive retroactive pension enhancement they hadn't worked for or had a right to expect when they were hired. The only good news: it would be subject to that referendum, rather than simply imposed by fiat, and might be voted down. If the deal gets on the ballot, perhaps I'll write a letter to the editor of the San Francisco Chronicle, if it still exists, in opposition.
In the meantime, the New York State legislature needs to quit the incremental steps and go all the way, showing New Yorkers what the future really holds. It should be honest and pass a bill that allows all current employees to retire immediately regardless of age and receive a pension equal to double their last year's wages each year in perpetuity, tax free, with health insurance with no contribution that covers all meals prepared by a nutritionist and a daily massage. And to pay for it, future hires would be required to work for 50 years at the minimum wage with health insurance limited to first aid, to be eligible to retire at age 80 with a pension of $1.98 per year.