Friday, December 4, 2009

Candidate for Governor - Charlie Baker

Charlie Baker is running for Governor in Massachusetts. He has identified that pension reform is one of the key issues that resonates with voters.

Pension Caps
Baker said today he wants to cap all pensions at $90,000.
In Ontario we have seen the are over 53,000 public sector workers earning over $100,000 a year. Those earning over $130,000 will get pensions in excess of $100,000 per year.  This is still a pension worth $1.6 Million.

Pension spiking 
He wants to prevent workers from temporarily jumping into more lucrative jobs and collecting a boosted pension based on the increased salaries. This can happen because in the public sector pensions are based on a final 3 or 5 year average salary. The standard in the private sector is for a pension based on a career average.

Career Average Pensions 
He proposes calculating a pension over a worker’s career, rather than the top three salary years.Most government pensions are based on the final 3 or 5 years of salary.

Of course Charlie will have a tough go from the largest voting block, public servants. However, he is popular with taxpaying voters and is getting Record Amounts of Contributions for his campaign.

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