Bevin’s policies flip Robin Hood: give rich what’s taken from poor

In the late middle ages, an outlaw emerged in English folklore. The nobles of Nottingham said that he and his band terrorized Sherwood Forest. Yet, Robin Hood’s name grew to heroic proportions because each succeeding generation has found something redemptive about his devotion to taking from the rich and giving to the poor.

Conversely, one of the biggest problems we face in Kentucky today is Gov. Matt Bevin’s commitment to practicing “Robin Hood in reverse,” whereby he gives to the rich what he takes from the poor, teachers and other workers.

In January, despite being closer to full recovery of manufacturing jobs than any neighboring right-to-work state, Bevin led the charge to pass right-to-work legislation, effectively stripping unions of their ability to secure dues from all workers they are legally required to advocate for. Bevin also signed a bill to repeal the prevailing wage and has worked consistently to make affordable health care less accessible to people struggling economically.

The governor would argue that he’s driven by fiscal responsibility and his desire to stimulate the economy. However, one consistent impact of his actions is that teachers, workers and poor people suffer, while wealthy and corporate interests reap harvests where, often, they have not sown.

Such is the case with Bevin’s plan for pensions.

Clearly, people don’t choose to teach in public schools or work for state or local government to become rich. However, the one distinguishing personal incentive for public servants has always been that they could pay into a pension system and achieve a well-earned measure of financial security upon retirement.

Now, this security will be gone for new and future teachers and non-hazardous state and local government workers, if Bevin successfully executes his plan. There are several major problems with this.

By one report, there is a $33 billion shortfall across the state’s pension systems. This is indicative of the magnitude of the failure of elected officials to make adequate contributions to the systems over a long time. To Bevin’s credit, he has taken steps to address the underfunding since he took office. But to expect state employees and retirees, who have lived up to their commitment, to now shoulder the burden associated with fixing this mess is morally unacceptable.

Also, Bevin is proposing a solution that was not even designed to address retiree needs. It is well documented that 401(k)s were created to allow wealthy executives to defer taxes, while supplementing retirement income. They were never designed to replace pensions.

However, corporations quickly began to save money by shifting other employees into 401(k)s and phasing out pensions. The quality of life of private sector retirees has suffered ever since. Only Alaska, Michigan and West Virginia have followed this corporate path, and all three transitions have been unsuccessful. Sadly, that has not softened Bevin’s resolve.

Furthermore, shifting new and future employees into 401(k)s will not protect the pensions of retirees and employees who remain in the pension systems. Without new employee participation, the risk in each pension system’s investment portfolio will steadily decrease, shrinking growth opportunities. Pension systems will either fail despite Bevin’s plan or require more funds from future state budgets than would have been needed to stabilize the current systems.

The money exists to shore up all pension shortfalls but each year our system gives those dollars away as tax incentives and tax credits.

Lastly, Bevin’s plan will require many people considering education and other public service to look elsewhere. It will also force many effective public servants to leave to gain adequate financial security.

None of that seems to matter when elected officials are looking out for the interests of those who fund campaigns and inaugurations.

So, we must call our legislators, visit their offices, send emails, attend rallies and convey the message loud and clear that we, the people, will not allow Robin Hood in reverse to continue, and we will vote them out of office if they choose this plan over people.

This story was originally published November 3, 2017 at 7:53 PM with the headline "Bevin’s policies flip Robin Hood: give rich what’s taken from poor."