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L.A. Looking to Cut Pension Costs

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    Los Angeles City Administrator Miguel Santana on the city’s efforts to reform pensions.

  • Duration 3:08
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As well.

-- take a big deep breath everybody look at this.

After San Jose and San Diego voted for public woke up pension reform LA's -- Antonio Villaraigosa he is following suit.

That Mac asked city administrative -- some -- To -- -- documents needed for pension reform to present to the City Council.

Thomas joins us here today.

In this New York City -- welcomed the program think it's -- much for having me now this is this is what you want.

You wanted the math.

To put to the people of LA city.

You wanted a referendum on whether or not you could make changes to the pension plan for retired state -- you want to this right.

Well we recommended that there be pension reform and ultimately the council can -- and on its own.

I think with the mayor saying is that the council does an act and he'll go ahead and put on the ballot and have the people decide this is a very big issue all across America.

The reform of the pension system full retired state government welcomes you want reform don't you.

That we what you you're gonna put this onto a referendum will we need reform pensions are the biggest driver to our deficit and despite the fact that we reduces size of government.

By over 5000 employees or 14% over three years.

We continue to -- face deficits and driving that is of course our pension costs okay that would is is it true to say that if you don't get any reform.

And you have to keep on paying out these pensions.

-- goes bankrupt.

We're not gonna go bankrupt and I nobody wee bit you'll get to the brink want you.

No well we're not gonna go bankrupt but will we are gonna do it's gonna have to continue to cut services -- at the end of the day we have two choices.

But continue paying those.

Payments or pursue something like that we're not gonna do that look at it okay hold on -- if you've got to keep on paying what -- -- now.

No reform you keep on paying.

How badly do you have to cut back services on education for example and healthcare after the -- -- how badly -- the -- -- going to be the cutbacks are going to be significant we're gonna have to cut back on public safety that's the next they carried -- -- cause.

We're gonna have to reduce the size of the workforce of our police depend on the -- fire you reduce the -- of the world that's core fire and police -- well right we've been Naples and even able to do address our deficit by protecting public safety.

I think that's the next big hurdle to confront -- teaches you have to lay some off.

Well we're not in charge of the school district that the school district is facing the exact same problem and -- facing -- life that is correct and obviously prices go off class sizes go up obviously they're reducing the the school year for children which -- -- good for education.

And so our pensions are what ultimately are really hurting government so here's how we -- and ally citrix.

I see that you have to continue to pay these pensions to older people.

And the price of doing that.

Is to force out younger people from the world -- so the young -- because of payments to the old accurate.

Well we haven't hired anybody so in essence you're right.

Mean that the fact of the matter is that the courts have determined so far that your pensions are your right.

It's a vested right San Diego and San Jose are challenging that notion you know so until it's proven otherwise we have -- a duty to continue paying those --

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