Pension Programs Still Not Controlled

The enormous burden of pension programs for public employees is a critical issue facing West Virginians. Legislative action relating to it needs to be taken carefully and in full view of the public - taxpayers who, after all, are saddled with the burden of about $5 billion in unfunded liabilities for pension programs.

That isn't what happened during the special session of the Legislature this month. Pressured by public employees, lawmakers agreed to give some government retirees $10 million in pension "bonus" money. Supporters of the measure made certain it couldn't be defeated by inserting it in another bill rather than taking it to the floor as a separate piece of legislation.

We sympathize with government retirees who have trouble making ends meet on state pensions. Then again, we also have some sympathy for the 1.75 million or so other West Virginians, most of whom do not have retirement plans as generous as those enjoyed by many public employees.

During their special session, legislators were to consider a bill proposed by Gov. Joe Manchin to give pay raises to teachers and other public employees. That plan was publicized well in advance of the special session. But then, lawmakers came under pressure from lobbyists for public employees and retirees. A measure granting the $10 million "bonus payment" was inserted into the pay raise bill. That virtually guaranteed that the bonus would be approved; few legislators would have been willing to risk the wrath of public employee unions by voting against the pay raise bill.

The $10 million won't go far. It must be distributed among about 45,000 retirees. According to one lobbyist, it had been hoped that lawmakers would approve a $45 million bonus. Rest assured, legislators will be pressured for additional bonuses in the future.

Again, we understand that some public employees, particularly those who retired many years ago, may have trouble making ends meet. But so do many other retired West Virginians who, because they worked in the private sector, will never receive any pension bonus. Yet they will have to pay taxes - a substantial portion of which will be used to pay for public employee pensions.

West Virginians have been led to believe that their state leaders finally had gotten pension programs under control - that safeguards were put in place years ago to avoid running up new commitments. But what really happened was that state leaders found ways to make use of technicalities. A law put in place during former Gov. Gaston Caperton's administration stipulated that no permanent increase in pensions could be enacted unless legislators provided funding to cover it within six years. But a "bonus" isn't permanent - and that is the loophole legislators found to allow them to bow to lobbyists seeking more money for government retirees.

West Virginians already are paying for very good pension programs for many public employees. Yet we believe that taxpayers are more than willing to consider additional help for retirees - providing they have an opportunity to consider the issue. That wasn't provided when lawmakers approved the $10 million bonus. There was no public debate - and no chance whatsoever that the measure would not be passed.

Continuing to handle public employee pensions in that manner will open the door to even more spending that West Virginians cannot afford. That simply must not be allowed to happen.

 

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