As public pensions are unraveling, with cities like Stockton, San Bernardino and now Detroit burdened by huge retirement obligations owed to workers and now unable to pay their bills, news of private lobbyists entitled to receive benefits is causing concern, the Wall Street Journal reports. Hundreds of lobbying groups in 20 states are entitled to receive retirement and, in some cases, health care benefits because they represent associations of cities, counties and school boards. Many states are following New York’s lead to end these arrangements — although New York’s ban would only affect future workers.
Critics of the current system argue that employees of private entities that pay private sector wages and have no public oversight should not receive public benefits.
The issue is coming to light as the reality of public pension deficits is making news, but the percentage of private lobbyists receiving public benefits is actually very small. For example, of the 633,100 people covered in the $158.7 billion New York State pension plan, only 120 are members of an association.
Proponents argue that these lobbyists are carrying out public interest missions, and this may just be a case of outsourcing. But rarely do outsourced entities receive benefits from their clients.
