San Francisco Pension Reform: A Tale of Two Proposals
|Mayor Lee||Jeff Adachi|
||Cap pensions at $140,000|
|Raise retirement age for new hires||Raise retirement age for public safety employees from 55 to 57 and 62 to 65 for all others|
|Eliminate pension spiking||Eliminate pension spiking|
|Fixed yearly employee contribution rateto pensions and benefitsdepending on economic conditions||Income-based employee contribution rate to pensions and benefits depending on economic conditions
|Reduce benefits for new workers||Reduce benefits for new workers|
Both proposals are being criticized for not including any new revenue sources and for making the workers bear the burden of a recession driven by Wall Street by slashing their wages and reducing their purchasing power. What is certain is that fiscal sacrifices are necessary and a compromise must be reached soon in order to stop the rampant draining of the social safety net/government services which in the long run, becomes a much deeper attack on the working class.