Union-free Virginia not spared state pension woes

Where Wisconsin Gov. Scott Walker (R) wants to take his state, Virginia has already been: It is one of a handful of states that prohibit collective bargaining for public employees in state and local government. Given that, you'd think the state's retirement program would look a lot like those offered by private employers, right? The state has steadfastly maintained a defined benefit plan for the vast majority of its employees, a stable perk increasingly rare in the private sector.

Despite having no unions, Virginia has been one of four states where employees have, for almost 30 years, paid nothing each year toward their retirement. And its union-free status has hardly spared the state pension woes. Gov. Robert F. McDonnell (R) has warned that the plan will become insolvent over time if lawmakers do not address $17.6 billion in unfunded liabilities.

Virginia helps illustrate a reality that complicates the political rhetoric for both sides in the debate over public employee unionization: When it comes to retirement plans, there seems to be little correlation between union membership rates and either the generosity of states as employers or the financial stability of their systems. The reality suggests that, if more states went the way of Virginia and eliminated collective bargaining, it could be that neither union members' worst fears nor many Republicans' best predictions for retirement benefits would come true.

"It was a surprise to me," said Sylvester J. Schieber, former chairman of the Social Security Advisory Board and author of a recent study comparing the generosity of state pension plans. Schieber's work shows that states with few union members are typically no more stingy when it comes to employee retirement than those with many union members, he said.

Schieber's study, which looked at the percentage of an employee's working wages that pension systems are designed to replace in retirement, found that Virginia offers a middling plan - 32 states are more generous, 17 less so. But its plan offers workers nearly the same as that of Maryland, which has a strong union presence. Another recent study, by an economist at North Carolina State University, showed the same thing: Although states with strong unions offered better benefits in the 1970s and early '80s, that advantage had dissipated by 2005.

View the original article here

Virginia Union State pension not spared no trouble

Richmond-where Wisconsin Gov. Scott Walker (R) wants to take the State, Virginia is one of a handful of countries: already did not prevent public employees collective bargaining at the State and local government. Given that, you'd think the nation's retirement program may look like a lot of those offered by private employers, right? It would be a mistake. The country kept firmly defined benefit plan for the benefit of its employees, the vast majority of stable and increasingly rare in the private sector.

Although there are no unions, Virginia has been one of four situations where employees for nearly 30 years, paid nothing each year toward their retirement. And its troubles are hardly spared no EU country's pension. Gov't., Robert f. McDonnell (R) has warned that the program will become insolvent over time if lawmakers do not take care of 17.6 billion in unfunded commitments. Virginia helps illustrate that reality complicates political rhetoric for both sides in the debate about public employee unionization: when it comes to retirement plans, there seems to be little correlation between generous rates of Union membership countries such as employers or financial stability of their systems.

The reality is that, if more countries followed Virginia eliminated collective bargaining, it could be the worst fears of many Republican members of the Association and not the best predictions for retirement benefits will come true. "It was a surprise to me," said Sylvester j. Schieber, former Chairman of the Social Security Advisory Board of the author of a recent study comparing the State's generous pension.

Schieber's study shows that States with some Union members are typically not more stingy when it comes to employee retirement than those with many Union members, he said. Schieber's study, which looked at the percentage of an employee's salary that pension systems are designed to replace retirement, found that Virginia has a program lmkodsht-32 countries are more generous, 17. But his plan offers working almost the same as that of Maryland, has a strong presence.

Another recent study, by economist at North Carolina State University, showed the same thing: Although the United States with strong unions offered better benefits in the 1970s, ' 80s, and that's the advantage of the fog in 2005.

View the original article here