What happens when you spend much of your first year in office waging war against public employee’s retirement benefits? Well, anecdotally, the Columbus Dispatch reports this morning you see a massive spike in retirements in the public sector as employees who were already eligible for retirement decide its better to retire now and get the benefits you were promised than risk what Governor Kasich and the GOP legislature is considering taking away.
So, instead of taking pressure off the state pension funds who had been battered by the collapse on Wall Street that start with Lehman Brothers’ bankruptcy by reducing benefits, Kasich’s proposals have actually put a more immediate strain on them as employees flock to retire en masse before Governor Kasich’s “austerity” measures can take affect.
It’s called the “Law of Unintended Consequences,” Governor.
Some of this can be attributed to just plain old demographics. After all the prior records of retirements was from 2008-2010, depending on the pension fund (except for the Patrol.) There’s obviously going to be a spike as the Baby Boomer generation is entering into retirement age. But there seems to be little dispute that John Kasich has accelerated it, which, of course, operates to undermine the effectiveness of his pension changes in the first place.