In Joseph Reisert’s column of March 25, he writes, “The governor and our Republican state treasurer are working actively to improve the long-term solvency of the state pension system.”
I disagree.
The Gov. Paul LePage’s budget proposal would increase the public employee’s contribution to the pension fund by an additional 2 percent of salary, but that is offset by a reduction of 2 percent of salary in the state’s contribution, so it is a wash.
The effect is a 2 percent income tax surcharge on the public employee’s pay, which goes to the general fund. This proposal would be a special tax aimed at only one sector of the state taxpayer base, which hardly seems fair.
It does nothing to improve the long-term solvency of the retirement system.
The budget proposal also seeks to further limit cost-of-living increases in public pension benefits, which seems like a short-term fix, at best. As we all know, increases in cost of living, as exemplified by the rise in gasoline and home heating oil prices, are real, and hurt public employment retirees just as much as everyone else.
Past Legislatures have been criticized for keeping taxes down by juggling the books instead of more adequately funding the state retirement system. The public employees have contributed their share.
The governor’s proposed budget doesn’t improve the pension fund’s long term solvency, but repeats the errors of the past and levies a special 2 percent tax on public employees.
Jon Lund
Hallowell
Past chairman, Board of Trustees
Maine State Retirement System
Copy the Story LinkSend questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.