I enjoyed reading the recent editorial about PERS reform.
One thing that I have yet to see the press report or acknowledge is that there are a lot of public employees who contribute the 6 percent IAP amounts instead of being in a situation where the employer picks up the 6 percent. Either way, if it is legislated that PERS can redirect that money that would have gone to IAPs to reducing the PERS unfunded liability, these public employees will lose out in a big way.
I am in the group of PERS employees who do contribute 6 percent as opposed to the employer 6 percent pick-up, so I feel especially assaulted by the prospect of this legislation.
Imagine the state coming up to you and everyone you know with their hands held out, demanding 6 percent of your gross wages. That seems like robbery/theft or taxation. Furthermore, I have yet to hear a plan for a tax credit of any sort for people in this situation. The legislation seems ill-conceived or at least did not consider the unintended consequences.
I will never see a huge payday when I retire. I've resolved that this is OK, but I don't in any situation believe that the 6 percent redirect "solution" is OK as proposed by Sen. Kruse.