"...and here's your retirement under Rauner, Barney" |
GOOD COPS AND BAD COPS: RAUNER AND RIMEL
My
email from Rebecca Rimel couldn’t have come at a worse time.
Bruce
Rauner had just won the nomination to run as the Republican gubernatorial
candidate in Illinois, and the email from the CEO of the PEW Charitable Trust
was just another back-handed indignity, albeit one delivered in far more
delicately crafted verbiage than Rauner’s slash-and-burn platform.
Yet,
looking at both their desired outcomes, if there is a difference, it’s one of
little or no distinction.
You
might not remember that very recently New York PBS affiliate WNET was brought
to task for accepting considerable amounts of money to promote a PEW-backed
research and program regarding needed reductions/changes in public employee
pensions in New York. PEW also received
like amounts of donations.
Abashed,
WNET returned the “donations” to John Arnold, a hedge fund manager who earned
millions of dollars in trading at Enron, a dubious distinction at best.
For WNET, any exposed connection seemed, well, unseemly; and they quickly
dissolved the relationship.
Not
so for Rebecca Rimel or PEW Charitable Trusts. In fact, Rimel claims that
her well-known bi-partisan research organization is performing a civic service,
one tailored to help public workers keep their retirement programs as an
alternative to complete dissolution.
In
actuality, much of Rimel’s phrasing echoes the wording found in the Laura and
John Arnold Foundation’s (LJAF) mission (for the last three years) in guiding
state pension systems ‘to be part of a system that is fiscally sound,
responsibly managed, and that ensures their retirement benefits...and to
develop structural reforms that are comprehensive, sustainable, and fair...”(Principles
for Pension Reform | Laura and John Arnold Foundation)
Borrowing
the LJAF’s dire numbers, Rimel warns, “Public pension reform is arguably one of
the most significant fiscal challenges facing many states and municipalities
today. In fact, our research shows that state and local governments have more
than one trillion dollars in unfunded pension promises. Although some plans are
well-funded, in other places, if changes are not made, retirees, workers, and
taxpayers will be left with rising costs and unpaid promises for years to
come.”
Rauner’s
wording is a bit more direct: “I’ll shake things up.” or
describing SB1 as “a small bandage on an open wound” or “opining that unions
“are the problem” with “Illinois’ economic downfall.”
In
fact, for anyone experienced with hedge fund managers, Rauner’s vision of
bringing the 30 greatest corporate leaders out of Chicago to serve on a
roundtable for saving the state sounds more threatening than helpful. Evidently,
Rauner was not schooled in the same etiquette classes as were more wily and
artful characters Arnold and Rimel.
One
might even consider turning to someone appearing so intellectually concerned
for our ultimate welfare - someone like Rebecca Rimel. Something like the
PEW Charitable Trusts? And, that’s just
what a state legislature did…
On
the open letter website at PEW Charitable Trust (Pew
President's Message - The Pew Charitable Trusts ), Rimel glowingly
describes PEW’s very recent involvement in the Kentucky legislature’s pension
reform as a blend of detente and negotiated brilliance.
“The Republican-controlled Senate favored replacing the
defined-benefit plan (a traditional pension) with a defined-contribution plan
(such as a 401[k]). The Democratic-controlled House of Representatives argued
that was too risky for workers. But with technical assistance from Pew, the two
sides came together and created a hybrid plan, borrowing the best elements of
both kinds of pensions. The reform package is expected to save Kentucky and its
localities billions while protecting the retirement security of current and
future workers.”
In
PEW’s aftermath, however, Kentuckians may not see their intervention as clearly
a path to fiscal salvation:
· The loss of important
public safety over time benefits for officers of the law as a result of
anti-spiking legislation.
· Changing current workers to
a 401K kind of program without anticipating contractual medical benefits of the
already retired, sick or needy.
· Bankrupting one of the
seven significant services provided for mental health in the state of Kentucky.
· The loss of funding for
significant state agencies (from the Roads funding to Fish & Wildlife).
But
Pew and Arnold have accomplished in silk stockings in Kentucky what Bruce
Rauner and his squad of capos would have in Illinois by breaking wills and
heads if necessary.
Once
again, a difference with out any distinction.
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