May 07, 2013 10:10 AM UTC

All Manner of Contradictory Public Policy Positions Fit Under a Big Sky.

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• by: PolDancer

MONTANA PUBLIC SECTOR UNIONS: WE SUPPORT THE LEGISLATURE'S TAKING OF THE CONTRACTED PENSION COLA BENEFIT, AND WE SUPPORT A RETIREE LAWSUIT OVER THE LEGISLATURE'S TAKING OF THE CONTRACTED COLA BENEFIT.

MONTANA GOVERNOR: I'M SIGNING THE BILL TO TAKE THE CONTRACTED COLA; HOWEVER, IT'S ILLEGAL, AND I SUPPORT THE COMING RETIREE LAWSUIT OVER THE COLA TAKING.

MONTANA LEGISLATIVE ATTORNEYS: TAKING THE COLA IS ILLEGAL.

In 2010, Colorado public sector unions, 27 lobbyists, and a majority of "low information" Colorado legislators (on public sector pensions anyway) conspired to erase Colorado state and local government debt by taking accrued pension benefits from Colorado PERA retirees.

Montana public sector unions are now in the pension theft game; however, they should have taken the time to get their story straight up front.

From helenair.com:

"Bullock signs pension fixes, school funding bill."

"The plan is expected to face legal challenge from unhappy retirees who will argue in court that the changes unconstitutionally break the contractual obligations the state made to employees."

"The state's largest employee union, MEA-MFT, said it expects to support the litigation — even though it also still supports the overall fixes."

https://helenair.com/news/state-and-regional/bullock-signs-pension-fixes-school-funding-bill/article_3502dd1e-d19b-5d69-bb25-c77671a6792f.html

Eric Feaver, President, MEA-MFT:

"There are constitutional questions, questions of contract rights that are raised by so doing (changing guaranteed annual benefit adjustments.)"

"Guaranteed annual benefit adjustments (GABA), as necessary as they are for retirees, are not themselves the pension."

(My comment: This is deceit.  Public pension COLAs are simply a method of delivering a defined, determinable, accrued public pension benefit.  Should your mortgage company be able to retroactively hike your mortgage rate, breaking your contract, because the mortgage rate "is not itself the mortgage"?  As in Colorado, Montana public sector unions are embracing a ludicrous [but convenient] contrivance.)

From helenair.com:

"In response, Bullock’s budget director Dan Villa said the governor’s office opposed the amendment that sought to change the GABA (COLA) and questioned its constitutionality."

"'We understand that both current employees and retirees are considering legal challenges to address the amendments, and we support that action,' Villa said. 'It’s important to keep in mind that this likely unconstitutional amendment doesn’t change one important fact: by implementing the remainder of Gov. Bullock’s plan, Montana is the first state in the nation to fix our pension system without raising taxes.'"

https://helenair.com/news/legislature/feeling-betrayed-retiree-group-asks-governor-to-veto-pension-bill/article_a6b2eaac-b2eb-11e2-b352-0019bb2963f4.html

Montana pensioners:

"The Legislature’s own attorneys have repeatedly advised it that GABA is a constitutionally-protected contract with public employees and should not be broken. If the Legislature chooses to advance legislation to renege on this important commitment it has to raise concerns with all citizens as to what other contracts the state may choose to ignore. If a 'deal’s a deal' only when the Legislature chooses to honor it, then what about Montana’s other contract commitments?"

"The Legislature should not violate the contract it statutorily committed to with Montana’s public employees. Rather, it should honor the commitments made to current and future government retirees including fully funding GABA."

"Unlike other states that have variable Cost of Living Adjustments in their pension plans, Montana enacted a guaranteed statutory annual percentage adjustment for its public employees."

https://helenair.com/news/opinion/readers_alley/montana-should-keep-commitments-to-its-public-employees/article_8cee6aac-98c8-11e2-8aaf-001a4bcf887a.html

Colorado PERA active and retired members, I am speechless.  Thankfully, I am still able to type. Support public pension contractual rights in the USA.  Contribute at saveperacola.com, and "Friend"  Save Pera Cola on Facebook!