There's a lot of handwringing about how the cost of state worker pensions is going to bankrupt the states. But are state worker pensions really "too generous"?
Let's start with irresponsible funding. If the state skips a $1 billion pension contribution in 1995 to balance the budget without raising taxes, that state has to put $2 billion into the plan in 2010 to even out for the lost earnings at 5%. So the state government doubled the cost of the pension all by itself.
And over the last couple of years, state pension funds have taken huge hits on their investment base. The states now have to make up those losses. That isn't their fault either.
If we stop scapegoating state workers based on a few highly publicized scandals, perhaps we can figure out a way to solve the problem.