Rep. Jason Chaffetz is proposing a resolution for the House of Representatives to refrain from bailing failing state employee pension funds. The resolution notes that the federal government should not prop up such underfunded plans with the federal deficit itself out of control. Christopher Prandoni, Executive Director of the Alliance for Worker Freedom, has written letter of support for Rep. Chaffetz's initiative:
"A key factor in the underfunding of government employee pensions is the inflated benefits promised to individual workers. On average, government workers with defined benefit plans are owed $2.85 in retirement benefits per hour worked. Comparatively, a private sector worker with a defined benefit pension plan receives $0.41 in pension benefits per hour worked. This iniquitous pay disparity favors politically connected government workers while taxpayers foot the bill.
Taking a federal bailout off the table will force governors and state representatives to make difficult but necessary reforms. If insolvent pension plans are to be fixed, solutions should originate within statehouses