Page 854 - Pensions News Today

Program that feeds people in need. we serve over 1200 meals. weve been doing that for 30 years. >> the government always had a role to play as well. during the americans colonial period, you had the british poor. in the 1930, the new deal added social programs. >> the president signs the social security bill, old age pensions, unemployment insurance. >> youve had an administration which instead of rolling its thumbs, rolled up its sleeves. >> of course, the biggest jump came in the 1960 when is ...

>> eric: hello. im eric boling. and joining us this week is julian epstein and what has him fired up bus first to the teachers and administrators in atlanta accused of inflating standardized test scores to win performance bonuses. some reportedly throwing pizza parties while changing incorrect answers. teachers unions saying the test crazed policies to improve scores. kimberly, blame the teachers that are cheating or blame the testimonies? >> blame the -- tests. >> they are retiring with pension...

Have to be paying more to borrow. >> paul: stockton, if the bondholders take it, then they will be frozen out of the bond market for a long time, i assume. >> they should be, you cant just wipe out bondholders. >> and all of these california cities you start to wonder about them, as alicia and others have written. this is a state where middle class people are fleeing. if you think of sort of long-term growth and the ability to fund these big debts, its hard to see it in california. you throw on ...

>> it seems as if, though, the biggest problem facing the next mayor is this budget issue, which, frankly, a lot of mayors are dealing with around the country and a lot of governors and the federal government itself. so, how do you plan on going about that? i know you announced a plan to cut sort of the budgets of the mayors office and the city, but thats a drop, as we know, not a lot of money. the real issue has to do with pensions, right sph. >> well, look, first and foremost, as mayor of los ...

Straddled over this huge gap. when i talk about social insurance, ill saying, why in the world cannot we means test social security? because there are millions of affluent retirees that have large asset bases or large bank accounts or pensions or annuity thats shouldnt be getting money that we cant afford out of a social security program and system thats broke any way. there is no money in that trust fund. it is just confessy. that is just one of the many myths and illusioneds that keeps congres...

Pensions they might have in other communities? >> other communities in california? probably not. but other communities, other parts of the country, definitely. and we, you know, greta, we have some of the most generous pensions in the country here in california. >> if theres no way to sort of renegotiate these pension programs and are these pensions just untouchable? >> thats whats going on right now in court. and the bond holder will lose a lot of money in the bankruptcy and theyre the creditor...

Pensions they might have in other communities? >> other communities in california? probably not. but other communities, other parts of the country, definitely. and we, you know, greta, we have some of the most generous pensions in the country here in california. >> if theres no way to sort of renegotiate these pension programs and are these pensions just untouchable? >> thats whats going on right now in court. and the bond holder will lose a lot of money in the bankruptcy and theyre the creditor...

Theyre going to require rate hikes over 50% over a period of several years for local and state governments and some are so strapped by the pensions theyre going to make, increasing by 50% could tip them into bankruptcy. >> greta: and means they cant pay for new police officers or other community services. thats the problem right now, i assume that they cant meet their payroll? >> yes, youre exactly right. i mean, these pension costs have crowded out the other, the other budget issues and other t...

Theyre going to require rate hikes over 50% over a period of several years for local and state governments and some are so strapped by the pensions theyre going to make, increasing by 50% could tip them into bankruptcy. >> greta: and means they cant pay for new police officers or other community services. thats the problem right now, i assume that they cant meet their payroll? >> yes, youre exactly right. i mean, these pension costs have crowded out the other, the other budget issues and other t...

And not that, now the citizens of stockton, judge, had to cut down on health benefit, slash unemployment and renegotiate some labor deals and had to cut library and recreation funding and scaled town police departments presence and now the police department only responds to emergencies in progress and the city crime rate is among the highest in the country right now according to the associated press. >> this is a direct response, a direct reaction, a causal relationship to the profligate ways th...