‘The plan was too good to be true’: Pension reform, public pension reform
The Obama administration has announced a new round of public pension reforms, but critics say it’s too good-looking to be real.
The White House announced the plan Thursday that would take the US’s public pension system back to a time when many people had private pensions.
The plan would provide $50 billion in additional funds to help pay down future debts.
It is not clear what, if any, additional savings the plan would generate.
The administration also says the plan will improve health care coverage and create thousands of new jobs, but that it is not yet clear what the jobs would be.
The plan comes as President Barack Obama and his allies are pushing for new pension reform that would bring in $2.6 trillion in new money over the next decade.
The $50 trillion package would help pay for the Affordable Care Act’s health care law.
It would also help cover the $1.7 trillion in retiree healthcare benefits that have been scheduled to expire in 2021.
The public pension crisis has been the subject of intense debate in Washington, with Republicans calling for new reforms, including an extension of the current public pension plan.
The Obama Administration says it’s working with lawmakers on an ambitious plan that would provide up to $2,000 per year for each American to pay into the public pension fund.
The proposal is expected to be unveiled this week.