Monday,  Aug. 26, 2013 • Vol. 15--No. 42 • 18 of 29

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qualify for such benefits, since they are private entities in most respects: They face no public oversight of their activities, can pay their top executives private-sector salaries and sometimes lobby for positions in conflict with taxpayers. New Jersey and Illinois are among the states considering legislation that would end their inclusion.
• "It's a question of, 'Why are we providing government pensions to these private organizations?'" said Illinois Democratic Rep. Elaine Nekritz.
• Acquario, executive director and general counsel of the New York State Association of Counties, argues that his group gives local government a voice in the statehouse, and the perk of a state pension makes it easier to hire people with government expertise.
• "We want the people that work in local governments to continue to be part of the solution," he said. "We represent the same taxpayers."
• The debate is more about principle than big money, since the staffs of such organizations are relatively small and make barely a ripple in huge state retirement systems. The eight New York associations, for example, have fewer than 120 total employees out of 633,100 current workers in the state's $158.7 billion pension system.
• Still, the issue raises a public policy question as many states and taxpayers struggle to fund their pension obligations required by law.
• "There is liability for taxpayers," said Keith Brainard, research director of the National Association of State Retirement Administrators. "Providing a pension benefit involves some amount of risk for the state and when you provide access to employees of entities that are not in control of the state."
• Unlike state government, for example, these groups aren't bound by salary restrictions -- significant salary increases would result in increasing pension benefits.
• New York Conference of Mayors Executive Director Peter Baynes, who makes $196,000 a year and gets a 2012 Jeep Grand Cherokee, argues that his and other associations have been at the fore of pushing to reduce taxpayers' costs, including reducing the costs of the pension system they share.
• New York lawmakers recently acted to reduce benefits for future government hires and are proposing 401(k) savings programs for employees instead of traditional pensions.
• But such cuts won't affect Baynes. Under the New York Constitution and that of most states, the benefits of those already in the pension system are protected from future cuts.
• "It's clear that there's a big problem with hypocrisy when these lobbyists have been pushing austerity and benefit cuts for other government workers while they

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