An annual interest rate of 8.4 percent should impress investors in any economy, let alone this one. Traditional savings accounts currently yield less than 1 percent, and IRAs and 401(k)s across the country have yet to recover from a whopping 32 percent loss in value between 2007 and 2008. And most troubling of all, millions of Americans remain underwater on their mortgages.

These accounting changes undermine the retirement security of teachers, cops, firefighters and other public workers by making unfunded liabilities appear much larger than they actually are.

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Now that ballot initiatives targeting public employees’ pensions have passed in San Diego and San Jose, state legislators and politicians in other cities may be contemplating similar efforts. But new data released this month should give them pause.

When it comes to retirement benefits, public employee unions have one thing right: We should not eliminate traditional pension plans.

The message from voters about public pension plans is clear: They’re ready to cut the retirement benefits of police, firefighters, teachers and other state and municipal workers.

To the detriment of all public employees and all of our communities, ‘The Widening Gap Update’ uses data from fiscal year 2010 and will undoubtedly be used by organizations and individuals like the Koch Brothers and Arnold Foundation to advance …

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