The California Public Employees Retirement System and various union organizations are fighting back against the tide of pension-reform sentiment. A new press release from a a union group makes the bizarre argument that cutting pensions for government retirees will hurt the economy by reducing their spending power, without taking into account the harm high taxes and unfunded pension liabilities impose on economic activity.
This is from the Californians for Retirement Security statement: "Providing more evidence today of the detrimental impacts of proposals to gut public pensions, CalPERS announced that pension payments to retired public employees generated $26 billion of economic activity in California last year. 'This should be front-and-center in any discussion about pensions,' said Dave Low, chairman of Californians for Retirement Security. 'It is more concrete evidence that slashing pensions would have a devastating effect on the California economy and communities that depend on taxes from retirees. At this time of sluggish economic growth, pulling the rug out from under the economy by reducing pensions makes no sense.'"