Piggy savings bank, a Creative Commons Attribution (2.0) image from alancleaver’s photostream

These are excerpts from the October 21st edition of Bill Peduto’s twice monthly newsletter. You can read many posts about the parking-pension issue at Reform Pittsburgh Now. You can sign up to receive the newsletters here.

FAQs About Pensions

Many of you had questions regarding the city’s pension plan and many of your questions were the same. Let me try to address the major questions. Many of you wanted to know why the city is not trying to change the pension plan for present workers. First, I don’t believe you should break a promise and we have promised our present and past employees certain benefits. Secondly, the PA State Constitution prohibits any municipality from changing pension benefits to municipal employees. (You can read the rest of this article here.)

Why a State Administered Plan is Needed for Pittsburgh

So where do we go from here? The plan to lease our assets for 50 years did not resolve our pension crisis. Like a bucket with a hole in the bottom, the only thing it would have done was to buy us more time. But, with a system that bleeds over $30 million a year, it would only be about a dozen years before we would have spent all the money JP Morgan was offering. We would have been back to where we are now and would have the highest meter rates in the country. (You can read the rest of this article here.)