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Legislative Pensions: Leading by Example

Posted on Thursday, February 11th, 2010 at 12:16 pm

The State of Maryland’s pension system is actuarially unsound to the tune of about $32 billion.  When you hear a stat like that, the next natural thing to do is to look at the pension plans in the system.  The plan for legislators, for example, is far more generous than most offered in the private sector, especially since it includes a defined benefit.  By comparison, fewer than 5% of private sector companies offer defined benefit plans.  It is also more generous than the plan we offer other state employees and teachers.

Delegate Bill Frank (R-District 42) has suggested that we move to a defined contribution plan instead.  I think he has a great idea for two reasons.  First, it could save the state $700,000-$1,000,000 every year.  Second, in these tough fiscal times, the State must address looming and growing obligations such as pension funding.  A debate on Delegate Frank’s plan will take place on the House floor tomorrow and I will be supporting his plan.

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7 Responses

  1. [...] but employees and unions both need to realize that pensions are financially unsustainable. …Legislative Pensions: Leading by Example Poli-Chic MarylandAs to the other employees and teachers, messing with that defined plan will result in the … Name [...]

  2. Windriver

    There should be NO taxpayer paid retirement for elected officials. There are no retirement plans for part time jobs in the private sector. These positions are public SERVANTS! Not public Elite.

    Part time job, full time pay, and a nice free retirement.

    Scandalous in this or any economy.

  3. Cold for Dem Leaders

    Delegate Haddaway,
    Thanks for letting the people of Maryland know what is going on. There is no way that Maryland legislators should continue to receive a more generous pension plan than the teachers and most other state employees in Maryland do. Why do the Dem leaders stifle debate on such issues when they already possess super majorities in the legislature. If they want to defeat the idea on the merits, so be it, just “man up” and have your vote on the merit recorded. Instead they just stuff the vote in Pelosi-like fashion with procedural maneuvers and slickness. Then they effectively tell Marlanders to eat cake if they are hungry for change from monopoly government. Pelosi like for sure.
    Cold

  4. Tommy

    Perhaps you should look at the Judges’ Pension Plan. Especially the section about employment with the state after retirement.
    As to the other employees and teachers, messing with that defined plan will result in the quality of personnel dropping further than the abysmal level it currently enjoys.

  5. [...] here:  Legislative Pensions: Leading by Example « Poli-Chic Maryland tags: example-posted, pension-system, pensions, posted-on-thursday, state, the-tune, [...]

  6. Seems akin to federal lawmakers pensions (healthcare too). Bet those working in the non-profit sector like your Talbott County Child Advocacy Centor don’t come close, probably no pension benefit at all.

    Frnak’s bill has no chance, far too much common sense and logic but go for it……this from a die hard liberal dem.

    See you sometime in Annapolis

    Rex
    Pres.CEO
    Hearts & Homes for Youth
    1320 Fenwick La.
    Silver Spring, MD 20910
    301-589-8761

  7. [...] the original here: Legislative Pensions: Leading by Example « Poli-Chic Maryland Tags: companies-offer, defined-benefit, especially-since, far-more, most-offered, private, [...]

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  • About Jeannie Haddaway

    Delegate Jeannie Haddaway-Riccio, an Eastern Shore native has been a member of the Maryland House of Delegates since 2003. Appointed by former Governor Robert Ehrlich, she was the youngest woman in the nation to serve in a state elected position and the youngest member of the Maryland House of Delegates. She was then elected in the November 2004 election.

    Aside from being a young woman in politics, she has professional experience in the private sector, the public sector and the non-profit sector much of which has been dedicated to environmental work. Her unique perspective as a “conservative conservationist” has been demonstrated by the policies and initiatives she has supported in Maryland.

    She is extremely active in her community serving on the board of the St. Michaels Community Center, the Talbot County Child Advocacy Center and the PACE Advisory Board at Salisbury University and is a Character Counts Coach for high school students. Still she finds time to run her own graphic design business, Dragonfly Designs, LLC and spend time with her husband Joseph Riccio and their dog Max. They reside near St. Michaels in Talbot County.

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