Categories
Accountability government transparency moral hazard responsibility

Opaque Pension System

Requiring government transparency is as necessary in those areas where governments can grant special favors as in those where governments can inflict direct harm.

That is, it’s as important regarding government worker pensions as it is of the abuse of police power.

In Nevada, the legal requirement for the state’s Public Employee Retirement System (PERS), to disclose who gets what in pension payments was recently thwarted by PERS itself.

“By replacing names with ‘non-disclosable’ social security numbers in its actuarial record-keeping documents, PERS has attempted to circumvent the 2013 ruling of the Nevada Supreme Court requiring disclosure,” explained Joseph Becker of the Nevada Policy Research Institute.

I’m quoting from NPRI’s July 6 press release. Most such publicity isn’t all that interesting, but this one catching government agencies deliberately working against their duties sparks a certain . . . interest. Wouldn’t you say?

Simply by altering how it keeps records, PERS officials hoped to stifle public . . . “spying.” It’s reasonable to prevent government from giving out public servants’ Social Security numbers, so PERS switched to listing information under those numbers, in so doing “violating both the letter and spirit of the Nevada Public Records Act,” explains Becker.

And thus undermining democracy — republican governance —  itself.

This public disclosure wouldn’t be an issue if the pension system were run privately, based on defined contribution funding. But that’s not how governments do things.

We must hold government’s proverbial feet to the fire — of public information — to make sure government employees and taxpayers are both treated fairly.

This is Common Sense. I’m Paul Jacob.


Printable PDF

government, pension, transparency, Nevada, illustration

 

Categories
links

Townhall: Over the Cliff?

Sometimes it seems that politicians have set up for us a Looming Financial Doom.

Why would they do that? And how do we avoid it?

Expanding on the subject of Friday’s Common Sense, I try to tackle both questions in this weekend’s Townhall column, “Over the Cliff.”

The column takes a few long quotations from The Washington Post article, and one short quotation from the actual study. Also linked in the column is a Common Sense from some time back, about public employees gaming the public employee pension system. It’s worth noting that the chief problem with the system is that it is badly rigged. But the gaming doesn’t help.

I use the phrase “cordon off” — it is interesting to remember that “cordon” basically means “rope off,” but that “cordon” doesn’t mean “rope.”

For a previous discussion of the metaphor of the “fiscal cliff,” see “Cliff Notes.”