Impossible, right? Wrong. That’s how it works in Philadelphia.
A woman who worked for two years for the city has resigned. She will receive $50,000 a year when she reaches retirement age.
The city professes amazement that such a loophole exists. The city vows to close this loophole to future workers.
How could this loophole have existed? How could any city employee get $50,000 a year for life? Because the union negotiated it.
Will Philadelphia default? Of course. Will the union protest? Yes, but not too hard. Why not? Because the only way that the city will be able to keep existing union members employed after the default is for the default to take place.
All over the USA, there are naive city employees who really think the fabulous pensions they have been promised will be paid. The numbers do not compute. There is no possible way that states and cities will not default on these agreements.
These pensions will increasingly drain off city funds from existing programs. Voters will rebel. This will be a great time for conservatives to take over city councils. They will run on a “stop the pension” platform.
All they have to do is vote to stop paying. Then the unions will take the cities to court. After a long, expensive legal fight, the judges (who want their retirement paychecks) will declare this illegal. Then the cities will declare bankruptcy.
It’s clean and simple. It will shrink the local government.
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