Warren Kampf, a Republican who is serving his first term as state representative from the 157th District, reportedly has a plan to deal with the public employees pension funds which are short about $30 billion, a circumstance that is expected to cause massive tax increases and/or enormous reductions in services next year or soon after.
This underfunding, by law, has to be made up by government.
Kampf is proposing on introducing legislation that would shift all new state and public school employees into a defined contribution, 401-K type plan, which would free government from having to make good any shortfalls in expectations.
For new employees anyway.
For the old ones? No.
So would this mean the pension bubble problem has been solved? Even a little bit?
Let’s just say we are trying to be positive about this and clapping our hands when we find a penny in the dog poop.