“House
Speaker Madigan’s ‘let the courts decide’ is a travesty of justice, a costly
effrontery and negligence of a legislator’s oath of office. Though, we might
expect that Ty Fahner of the Civic Committee of the Commercial Club of Chicago
and other members who are practicing lawyers will represent the state “pro bono,”
and most of us will know why” (Illinois Pension Reform Is without Legal and Moral Justification).
This story
caught my attention on NPR’s Planet Money in May, 2012. I am not a lawyer, but
this court outcome has wide implications for public pensions.
The Northern
Marianas public pension story might give some context to the effort of the
edu-reformers to break teachers’ pension obligations and Madigan’s willingness
to “let the courts decide.” A judge in the Marianas is determining the fate of
public pensions for public employees on this American Protectorate. Madigan, et
al. may be counting on this court case to set the legal ground for breaking
public pension contracts.
The Northern
Marianas pension fund is the first public pension fund in the U.S. to seek
bankruptcy protection. I don’t think it will be the last. Chris Christie is
running around NJ screaming about teacher’s unreasonable pensions and the state
pension shortfall. They and other pension “Henny Pennys” fail to inform the
public that governors like Christine Todd Whitman in NJ and Jeb Bush in FL
borrowed money from the teacher’s pension funds to pay other debts (Bush used
the money to bail out Edison Schools when they mismanaged their money running
FL charter schools) and those funds have never been paid back; hence,
shortfalls.
It’s no
surprise the Marianas would be the test case to legalize a corrupt scheme to
steal the livelihoods of average government workers. It’s the home of Jack
Abramoff and Tom Delay and a tax shelter heaven for corporations. Someone
should investigate the judge hearing this case and the REAL reason state
pension funds are in shortfall. Theft, corruption, and greed by the financial
industry and congress might be buried in the files.
“Benefits
were too good” is a lie being perpetrated by the tapeworms in the financial
industry and edu-reformer types. In 1959, the Justice Department indicted Jimmy
Hoffa for “borrowing” from the Teamsters’ pension. Hoffa planned to invest the
money in a financial scheme that, when he cashed out, he would repay the
teamsters’ retirement fund. That used to be called fraud until the financial
industry in collusion with corrupt politicians turned private corporation’s
defined-benefit retirement plans over to Wall St. who sold average workers on
401K’s and IRAs – the gift that allowed corporations to funnel workers’
salaries into the coffers of “Jimmy Hoffas” in the financial industry. Then
Enron bankruptcy happened. The Enron bankruptcy case permitted corporations to
pay off investors instead of workers’ pensions. Millions of average workers
lost their pensions and were left destitute.
In the
meantime, all through the 1980′s and 1990′s, government officials all over the
US started “borrowing” from government workers’ pension funds – saying they’d
pay it back when financial coffers grew. Thirty years of tax breaks for
millionaires, billionaires, and capital gains drained state coffers, and
government officials never returned those “borrowed” funds. Sounds like fraud –
but NO. It’s those greedy policemen, firemen and teachers who don’t “deserve”
such a pension plan.
Wall St will
crack open the last protected pensions under the guise of lazy workers getting
extravagant retirements. The financial industry wants all of our money – state
and federal pensions AND social security to enrich themselves. This case could
give it to them.
Senator
Murkowski told CNN in a 1998 interview after the Tom Delay and Jack Abramoff
scandal in the Marianas was exposed: “The last time we heard a justification
that economic advances would be jeopardized if workers were treated properly
was shortly before Appomattox.”
-- JC Grim
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