New Majority Project

My friend Steve Moore of the Wall Street Journal has this excellent piece on out-of-control government employee unions in the current issue of the Weekly Standard.  Steve makes a passing reference to a critically important idea that we have been promoting here at New Majority: Moving the public sector from defined benefit to defined contribution pension plans. 

While the private sector has been moving in this direction for years, government remains mired in the past, making promises to workers about the future that it will never be able to keep.  It’s time for 401k’s to rule the day.  This is especially important for younger workers who change jobs frequently and will not likely accumulate the seniority needed to make a traditional pension valuable.  Better to give the young worker a retirement plan that moves with her from job to job. 

Good for workers, good for taxpayers.  That probably means it’ll never happen….unless we get to work and make it happen.