Do You Know What Meg Whitman Is Saying About Public Workers’ Retirement?

“We need to take retirement ages up. I want to increase vesting periods.”
(California governor’s debate, Sept. 28, 2010)
“New people are going to have to come in under a different deal…a 401k-style program like everyone in the private sector.”
(California governor’s debate, Sept. 28, 2010)
“The era of a defined-benefit program is over.”
(Interview with Orange County Register Editorial Board, March 23, 2010)
Meg Whitman wants to privatize public workers’ pensions by turning them into 401k-style plans favored by Wall Street. She said she would even take that to the voters and fund a ballot initiative to privatize pensions with her own money if necessary.
Some public workers also have 401k-type plans, so may not see why this is a big deal.
What’s the difference between 401k plans and defined benefit (pension) plans?
· 401k plans are controlled by big Wall Street investors
· 401k plans don’t guarantee the money will be there when we retire
· 401k plans lost as much as half their value during the recession, and many Americans have been unable to retire or don’t have enough to live on
· With defined benefit plans, we know the money will be there when we retire
· Defined benefit plans have lost value, but as people pay into them they will recover
· Defined benefit plans like CalPERS have real public oversight, unlike 401k plans controlled by Wall Street
If new public employees are moved onto 401k-type plans, that will increase the pressure on the few workers who still have pensions. Our pensions will be next.
What is Jerry Brown’s position on retirement?
While Jerry Brown has talked about the need to negotiate with state workers over retirement changes, here’s what he has said:
· Jerry Brown would not privatize public workers’ pensions
· Defined benefit plans still make sense for California
· Any retirement changes must be negotiated, not imposed
Download a flyer about how Meg Whitman is taking aim at our retirement.