Former Los Angeles Mayor Richard Riordan will be joining the John and Ken Show LIVE in-studio to discuss his most recent plan to replace city pensions with 401(k) style plans. Tune in as Riordan details his plan which will affect newly hired city workers.
Former Los Angeles Mayor Richard Riordan plans to submit language Friday for a May 2013 ballot measure that would eliminate government pensions for newly hired workers at City Hall, replacing them with 401(k)-style retirement benefits.
Riordan's proposal also would freeze the size of pensions for existing employees even when their salaries go up--unless they are promoted to a higher-paying job. The plan is designed to save hundreds of millions of dollars annually by 2017 and would apply to every city worker, including police officers, firefighters and employees of the Department of Water and Power, backers said.
For more than two years, Riordan has warned that retirement costs are growing so fast that they will eventually prevent the city from paying for parks, libraries and other basic services. He predicted that by 2017, the city's general fund budget would pay for pensions, police and firefighters and nothing else.
Read more at the LA Times