Pension system lacks oversight
By BRUCE MURPHY
Milwaukee Journal Sentinel, May 4, 2003
Both the state and Milwaukee County pension plans were passed quickly
with no estimate of the ultimate cost to taxpayers. A civic task force has
suggested changes in the county system, but the state plan may need reform
as well.
Legislators and other observers note three problems with the state
system:
Supreme Court justices who vote on the constitutionality of pension laws
were added to the plan in 1957, meaning they have a conflict of interest
when ruling on pension cases. Legislators are also covered. "In a lot
of states, they are very much considered citizen legislators, and they have
their own plan through a private employer," said Andrew Geiger, policy
analyst for the National Conference of State Legislatures.
Even lobbyists who might be expected to resist pension improvements could
be compromised. Staff of the Wisconsin Alliance of Cities, Wisconsin
Counties Association and the League of Wisconsin Municipalities are all
covered by the state plan.
The task force that examined the county system recommended separating
elected officials from the pension system, to remove personal temptation.
Milwaukee Mayor John O. Norquist said the same should be done with state
legislators, who he said view the pension as "free money."
While anyone can request the amount of pension a Milwaukee County
employee could or does earn, the law bars such disclosure at the state
level.
Norquist suggests a compromise: "I think for state elected officials
this ought to be a public record. I don't think it should be public for
other employees."
- No estimate of total costs.
Laws with a monetary impact normally require a cost estimate by the
Legislative Fiscal Bureau, but there is no price tag on pension bills.
Act 11 was passed without an actuary's analysis, and even when it was
done (before Gov. Tommy G. Thompson signed the bill into law), it lacked a
long-term estimate of the cost of benefit changes.
Should the Legislature require a 40-year cost estimate? "That would
be a reasonable requirement," said former Assembly Speaker Scott Jensen
(R-Town of Brookfield).
Copyright ©
2002 Global Action on Aging
Terms of Use | Privacy
Policy | Contact Us
|
