City and states across the country are struggling under the weight of hefty pension funds draining resources. But in San Jose, the president of the local AFSCME chapter is encouraging workers not to worry -- all this talk of pension crises isn't real and claims to the contrary are just unfair attacks on public employee unions.
In fact, the pension crisis is imaginary and will mostly resolve itself! Phew!
We have heard it time and time again from Mayor Chuck Reed and others: San Jose worker pensions are on an unsustainable course. If the trajectory of pension contributions were a straight line, this would be true. However, they are not and it is not. It is time to set the record straight about the imaginary pension crisis in San Jose.
From actuarial reports to unfunded liabilities, pensions can be easily misunderstood. The most important thing to know is that pension funding is cyclical, since the markets in which they invest are volatile...
In San Jose, the attack on city worker pensions is misguided at best and does nothing to further economic recovery. We call upon city leadership to stop conjuring up crises that pit working people against one another and instead focus on finding real budget solutions.
Keep moving... there's nothing to see here, folks!