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PBGC’s Perverse Incentives Undermine Multiemployer Pensions
For years, the Pension Benefit Guaranty Corporation (PBGC), the federal agency that insures private sector defined benefit (DB) pension plans, has been severely underfunded below…
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Illinois Pension Reform that Can Pass State Supreme Court Muster
When you’re in a hole, stop digging. That seems like such a simple concept that it shouldn’t need stating, but in the area of public…
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Illinois’ Narrow Road to Pension Reform
On March 24, the Illinois Supreme Court struck down a Chicago pension reform bill that sought to address the city’s considerable pension shortfall. In…
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In Memoriam: Giancarlo Ibarguen
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West Virginia Set to Enact Major Labor Reform with Prevailing Wage Repeal
West Virginia, which appears poised to become the nation’s 26th right to work state, may soon enact another major labor law reform. The state Senate is…
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West Virginia: Prospect for a Right to Work Majority
West Virginia may soon become the nation’s 26th right to work state—making the number of right to work states a majority for the first time.
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Will SCOTUS Friedrichs Case Lead to Member-Only Unions?
Government employee unions have a lot at stake in Supreme Court case, Friedrichs v. California Teachers Association—especially access to millions of dollars in compulsory “agency…
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In Friedrichs v. CTA, Supreme Court Can Strike a Blow for Free Speech
Oral arguments in one of the most important Supreme Court labor cases in years are set for January 11, with potential major implications in the…
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NLRB’s BFI Decision Deserves Overturning
Who’s the boss? That’s not often a difficult question to answer. But thanks to the National Labor Relations Board (NLRB), it’s no longer so easy.
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NLRB Denies Petition to Form College Athlete Union, for Now
The National Labor Relations Board (NLRB) yesterday denied a petition by Northwestern University football players to form a union. While this is a rare…
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Theatrical Union Ignores Membership Vote to End Volunteering Exemption
If a vote goes against you, ignore it. That is what a theatrical union did this week, when it announced it would ditch a longstanding…
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The $7 Billion Slowdown
The ongoing logjam at ports on the West Coast could cost American retailers around $7 billion this year, according to the consultancy Kurt Salmon. That’s a…
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Democrats vs. Government Unions
If late House Speaker Tip O’Neill’s famous saying that all politics is local has a corollary, it may be that politics is at its most…
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“I’ll Gladly Pay Future Generations for my Pension Check Today”
“I’ll gladly pay you Tuesday for a hamburger today” was the trademark utterance of J. Wellington Wimpy, the mooching character from the old Popeye cartoons.
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CalPERS: It Came from Sacramento
“Heads I win; tails you lose.” That essentially sums up the relationship the California Public Employee Retirement System (CalPERS) has long enjoyed vis-à-vis the Golden…
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Moody’s $2 Trillion Public Pension Shortfall Estimate Highlights Need for Better Pension Accounting Practices
In a new report, Moody’s estimates the nation’s largest pension funds face a $2 trillion taken together. That’s a lot of money. But as significant…
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CalPERS Abandons “Hail Mary” Investment Strategy – About Time
CalPERS knows when to fold ‘em. The California Public Employee Retirement System, the nation’s largest public pension fund (and one of the world’s largest), announced…
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Harris v. Quinn Gives Home Care Workers Renewed Opportunity to Get Back Compulsory Dues
When you can’t win, change the players. That was essentially the strategy pursued by government employee unions in recent years. This week, it came to…
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Is Harris v. Quinn Decision Preview of Abood Challenge?
The U.S. Supreme Court’s decision in Harris v. Quinn puts a brake on an ongoing effort by organize labor to expand the definition of “public employee”…
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When Hedge Funds Meet Pension Funds
Are hedge funds dangerous? Depends on who you ask — and where you look. For most investors, they’re no riskier than other assets — just…
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Warren Buffett: “During the next decade, you will read a lot of news – bad news – about public pension plans.”
Thus warns Warren Buffett in his latest message to investors, part of Berkshire Hathaway's annual report. And when the Oracle of Omaha speaks, most of…
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Finally Free to Leave SEIU, Michigan Home Care Workers Do Exactly That
Michigan becoming the nation's 24th right to work state in 2012 appeared to pose a challenge to major industrial private sector unions like United Auto…
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The “California Rule” and the “The Fall of Pacific Grove”
In my previous post, I described the "California rule," which puts state governments in a legal straitjacket when trying to reform underfunded public pensions.
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How the “California Rule” Holds Back Pension Reform
These days, local governments announcing bankruptcy seems like routine in California. Since the onset of the 2008 financial crisis, many state and local governments have…
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To Enact Pension Reform, Make Good Policy Good Politics
In my previous post, I looked at some basic principles that should guide state policy makers when tackling pension reform. Now, we turn to the…
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Who Wants to See Their State Go Broke?
Few people would raise their hands when asked that question. But actually putting a state's financing on sound footing is difficult in practice. That makes…
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“The bill doesn’t come due until well after the legislators who wrote the check have left office”
Thus describes an Illinois state Senator the challenge states face in reforming their public employee pension systems. Given that reality, it's astounding reform would ever…
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Loss of Economic Freedom Takes a Toll on Small Businesses
The 2014 edition of the Heritage Foundation/Wall Street Journal Index of Economic Freedom is set for release next week, and for America, the news…
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With Declining Membership, Wisconsin Teachers Unions Consider Merger
The the corporate world, mergers are generally considered a sign of confidence, as companies seek to expand their operations. Within organized labor, by contrast, they're…
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Public Pensions Are Not Property
Across the nation, state and local governments in dire financial straits face great difficulty in their efforts to bring their budgets under control. Pensions are…