EDITORIAL: Hangovers continue from 1999-2000 pension binge
Lawmakers increased government employee pension benefits in 1999-2000, but their failure to properly consider the long-term fiscal impacts is now causing strains on the state budget, writes the San Diego Union Tribune. One benefit known as the Defined Benefit Supplement allows retired teachers to receive an annual annuity with a taxpayer-guaranteed 10 percent return. This rate of return is far greater than is considered realistic by investment experts, which contributes to the long-term shortfall in the retirement system.
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