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Us - Two Rulings Find Cuts In Public Pensions Permissible

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http://www.nytimes.com/2011/07/01/business/01pension.html?_r=1&ref=business

Judges in Colorado and Minnesota have dismissed court challenges by retired public workers whose pensions had been cut — developments that may embolden other states and cities to use pension reductions as a tool to help balance their budgets.

The two lawsuits sought to reverse reductions in the cost-of-living adjustments that Colorado and Minnesota had previously promised to retired public workers. Generally speaking, once lawmakers have agreed to provide certain pension benefits to public workers, it is difficult, if not impossible, to roll them back because of protective language in state laws and constitutions and years of court interpretations.

Public pensions are considered so bulletproof that when the city of Vallejo, Calif., recently restructured its finances in bankruptcy, it cut other costs but left worker pensions intact.

The two court decisions, issued Wednesday, suggest that the legal tide may be changing for public pensioners. The political tide has already turned in some places — in addition to Colorado and Minnesota, South Dakota and New Jersey have also cut cost-of-living benefits for current retirees, and other states have been awaiting legal guidance before doing the same.

The Impossible Public Pensions Choices

To be honest they are suing the wrong people, they should go and sue the leaders that made these ridiculous promises in the first place along with the Union bosses that pushed for it.

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http://www.nytimes.com/2011/07/01/business/01pension.html?_r=1&ref=business

The Impossible Public Pensions Choices

To be honest they are suing the wrong people, they should go and sue the leaders that made these ridiculous promises in the first place along with the Union bosses that pushed for it.

20 years ago, when these promises were being made and had been made, few realised the risks involved, and I have yet to see anything from then where someone is predicting calamity.

So I don't feel that these promises were a deliberate crime.

Reducing existing pension benefits, even to those drawing their pensions, is a sensible move that at a stroke solves solvency issues everywhere. It is a shame such measures cannot be implemented to our own private and public defined benefit systems, including unfunded government ones.

This solution is totally effective, simple, and fair. Why can't we do it here?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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