For decades, California courts have prevented any cuts to luxurious public employee pensions, but the California Supreme Court is now reviewing arguments in a case that could allow slashing benefits.
A three-judge California Appellate Court ruling in August declared that public employee retirement plans were not “immutable,” because employees only required a “reasonable” pension. The ruling was a shock to unions that have been able to sustain public pension spikes, even if they put cities like San Bernardino in bankruptcy.
The appeal now before the California Supreme Court could have an impact that reverberates across the nation. Prior court rulings created what is referred to as the “California Rule,” which guaranteed government workers the pension that was in place on the day they were first hired.
As a result, this “first-in, always-in” precedent legally perpetuated a California government system that is wildly insolvent to the tune of $484.2 billion. That works out to a stunning debt of about $77,700 for every household in the state, according to the Stanford Institute for Economic Policy Research “U.S. Pension Tracker.”...
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http://www.breitbart.com/california/2016/10/21/pension-california-supreme-court-may-allow-slashing/
