Insurance surcharge is a ridiculous idea
The Minnesota Legislature in all its wisdom is considering passing a bill that would surcharge all auto and fire insurance policies in Minnesota. Why? To bolster fire and police pensions. Insurance premiums are high enough because of storms, uninsured drivers, lawsuits, etc. Tacking on a $5 surcharge per policy to help take care of a problem that Minnesotans did not cause is ridiculous.
Current pension shortfalls are far higher than any money that could be raised to help the problem. This is a regressive charge. Charging high-dollar policies the same as low-dollar policies. This $5 surcharge will quickly turn into $25, $50 or higher if this becomes a funding mechanism. The old adage “give them an inch, they will take a mile” comes to mind.
Public safety pensions should be funded through the General Revenue Fund. If they don’t have enough money there, maybe they should consider getting these guaranteed pensions that were promised under control. Instead of continuing to add to a broken system, let’s fix it. What a novel idea.