Posted on 06/08/2010 7:45:09 AM PDT by SmithL
In the United Kingdom, Tory Prime Minister David Cameron has warned that his new coalition government will have to invoke austerity cuts that could affect Brits for years, even decades. New Jersey GOP Gov. Chris Christie has turned into a conservative hero for telling an irate teacher who complained about her pay at a town hall meeting that she doesn't have to teach. Illinois Gov. Pat Quinn signed a bill in April to cut pension benefits for new state workers - it raises the full-pension retirement age to 67 and bases pension benefits on the last eight years' salaries - and he's a Democrat.
The spirit has spread even to what Christie refers to as Hotel California. Gov. Arnold Schwarzenegger has vowed not to sign a budget that doesn't include pension reform for new state workers. "I will hold up the budget," Schwarzenegger told Politico.com. "It doesn't matter how long it drags - into the summer or fall or into November or after my administration - and I think people will support that."
Last week, the Libertarian-leaning Reason Foundation released a report that found that California's unfunded pension liability "translates to roughly $36,000 for each California household." Author Adam...Summers called the current system "unsustainable and unaffordable."
It's been too tempting for dysfunctional Sacramento to pass pricey pension bonanzas. For example, in 1999, Gov. Gray Davis signed a bill that retroactively allowed some state employees to retire at age 50 with a pension as high as 90 percent of the last year's salary.
Schwarzenegger tried to fix the problem. In 2005, he proposed ending state employees' generous defined-benefit pensions by setting up 401(k)-style plans for new state hires. He collected 400,000 signatures for a special-election ballot measure toward that end.
Did a grateful public rally behind Schwarzenegger? Short answer: No.
(Excerpt) Read more at sfgate.com ...
Boy would I love a deal like that.
You can stab it with your recycled plastic knives, but you just can’t kill the beast.
Most firefighters here (and many, many CHP) go the disability route. Pretty much SOP.
AWESOME!!!
Government employment equals debt. In order to pay debt, we need more private sector profit and payrolls. Government unions and all the other commies need to figure that out. We also need the energy to fuel private sector growth. Turn off the oil spigots; turn off the growth. But then I err. The left isn’t interested in growth, prosperity and progress. Those things encourage liberty. The left wants serfs.
ONe small nitpick with the article —
Gov Christie’s “Hotel California” comment was not about California (yes SF Cronicle not everything is about CALI) it was directed at the NJ Teachers Union.
In NJ teachers are required to pay $830 a year in Union Dues, but they can choose to LEAVE or NOT JOIN the union and only pay $620 in UNION DUES.
Christie said,” It’s like the Hotel California, you can check out but you can’t ever leave”
When more than 50% of the population is either employed by the government or dependent upon it, then the bureaucracy will be insulated from rational control.
The real costs of medical retirement are the settlement up front and medical insurance. Depending upon injury, the employee gets a lump sum up front usually $10,000-100,000. Then the state covers medical insurance at a higher level for life of the employee AND spouse at a higher level than for other retirees. Currently, I pay $120 per month for full coverage for me and my wife.
The other thing that happens is that we pay a reduced income tax. I pay income tax only on 10% of my retirement income.
I'm a retired peace officer in Cal. Management level. Was going to work until 62, but retired at 51 after a heart attack.
Many local police and fire agencies in Cal also have 3% at age 50, with a max of 90% of the highest year of salary. Since they hire at age 21, you have to work until 51 to get the maximum (30 years times 3%. If the state continues to pay a pension, they could raise the retirement age and cut the %. Should two-tier the system now, so that new emeployees are not hired into the current system.
my best friends hubby just got that! He was a prison guard, now he’s hanging out, running marathons and biking. He’s going to live forever!!!
I do have to say however he worked at a thankless horrible job for 25 years dealing with the dregs of society with the reward being an early retirement. He makes about $60K a year doing nothin.
They need to base the pension payments on contributions, not defined benefits. This is what the rest of us have to deal with now.
Which is why in late 2005 I and my 6 figure income, high tax paying household; decided to leave.
Not to mention that Arnold gave up trying then. I was there in 2002-3 pushing to get Grey Davis out and have become polically numb since.
The recently retired San FRancisco police chief took advantage of that law!
“Departing police chief’s big payout
Former San Francisco police Chief Heather Fong left the department with a large check.
Fong’s anticipated retirement payout
Vacation payout: $56,275
Vested sick pay payout: $29,263
Wellness payout: $95,668
Compensatory time payout: $124,209
Total retirement payout: $305,415
Fong’s pay for fiscal year 2008-09
Regular pay: $297,629
Premium/other pay: $26,938
Total pay: $324,567”
Read more at the San Francisco Examiner: http://www.sfexaminer.com/local/Former-top-cop-Fong-cashes-in—53751022.html#ixzz0qHABB6eO
And, Californians wonder why they are in so much financial trouble?
I will not hold my breath while the “Shaky Side” folks attempt to sort this mess out.
And, I am urging my children to leave Kali-fornia for safer climes.
On the national front, I would give that deal to ozero in a heart beat.
Here is an idea that will save a lot of money — use the US Military retirement system as a model:
2.5% of final base pay x number of years served with a maximum of 75% of base pay on 30 years service.
And, make the whole thing retroactive!
That would, for example, reduce Ms. Fong’s annual retirement FRom $265,548 to $221,290.
[That may not seem a lot of money, but it is a powerful symbol, and if enacted throughout the entire Kali-fornia retirement system, might result in significant savings for the poor suffering taxpayers!]
Surely, in the interest of the “common good,” Ms. Fong would not object?
And, while I am on this roll, the same formula could/should be applied to all federal employees, as well. [Perhaps averaging the last five years base pay to avoid the “Retirement Promotion” bonus?]
After all, if 2.5% of base pay per year is good enough for the finest military people in the world, it is good enough for the rest of the federal workforce.
If I were King for a day, I would totally eliminate pensions for Representatives, Senators and appointed Executive Staffers, also, BTW. And, I’d do that retroactively, as well!
In the long run, the individual state and federal retirement systems will have to be revamped and include employee contributions to their own retirement plan, quite apart FRom Social Security, which also needs a new set of rules.
Us poor suffering taxpayers cannot continue to bear this increasingly onerous burden of public retirement plans which are totally devoid of actuarial sanity!
And we’ll have Mexico’s living standards.
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