Letter of Support: Rep. Nunes' Public Employee Pension Transparency Act, H.R.567

February 23, 2011 JLabor, Education & Pensions

Dear Congressman Nunes,

On behalf of more than 1.6 million Americans for Prosperity activists in all 50 states, I write in support of your bill, the Public Employee Pension Transparency Act (H.R.567), which takes an important first step toward shining a light on the unsustainable promises that state and local governments are making to their employees.

The country is undergoing a great awakening about the promises that our government is making to current employees, retirees and other citizens in the name of taxpayers and future generations. For too long the country has sat blithely by and endorsed these promises without truly understanding their ramifications or even weighing if the nation was capable of meeting them. That is immoral, it is fiscally unsustainable and it must end.

Horrifically, the true cost of these public pension promises—estimated at $3.3 trillion—is hidden from the American people. It is hidden because those making the promises do not want citizens to know the liabilities’ true scale and do not want the 20 million Americans who have been made these pension promises to know they may not receive what they are relying on. One technique used by fund managers to hide these liabilities is to use unrealistic discount rates mask the burden future taxpayers will face. I applaud you including a remedy to this problem in your bill.

Congressman, your Public Employee Pension Transparency Act is admirable because it begins by stating that the federal government will not rescue of state and local governments that have made promises they cannot keep. There will be no public pension bailouts. Next, by requiring transparent accounting standards and methods your bill will shine a light on pensions’ hidden obligations. Finally, by educating the public about the size of the public sector pension promises that are being made in their name your bill continues an important national discussion about the proper role of government and its misuse of power over individuals’ future earnings.

Americans for Prosperity is proud to support your legislation, I urge your colleagues to support its passage and I look forward to working with you in the future.

Sincerely,

James Valvo
Director of Government Affairs
Americans for Prosperity

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