When I was a kid in California in the 70’s, we paid 6% sales tax and had school buses, mental health facilities, some of the best schools in the country, and sewage was paid by the state. Today we pay a minimum of 7.5% and have none of these benefits. The reason is politicians over promised benefits to state employees in the form of pensions. At some point, either the pension benefits decrease or taxes increase. I’m alright with reducing the benefits. If taxes keep increasing as some point people will leave the state and the benefits will have to be reduced..How sad for these employees who worked for less pay than their private-sector peers, with the pension benefit to themselves and their beneficiaries being the main reason to have worked in the system.
I'm sure many of the beneficiaries didn't work outside the home due to caring for children, etc. knowing that they could rely on the stable income of the pension if their spouse pre-deceased. I'd guess that most of them are women who will outlive their husbands.
Hopefully, current employees are "grandfathered" out of this negative effect.
I don't know if UC employees pay into Social Security, but if not, that just makes the situation even worse.
What an embarrassing betrayal by the politicians, trustees, or whoever made this decision.
Statistics: Posted by Ependytis — Fri Mar 29, 2024 11:01 pm — Replies 24 — Views 4602