Posted on 01/02/2015 11:11:55 AM PST by Libloather
This year, judges in California and Michigan approved the exit plans of two of the largest municipal bankruptcy filings in the country’s history. In California, Stockton upheld its obligations to the state’s pension system behemoth, Calpers, while paying its other creditors as little as pennies on the dollar. Detroit, meanwhile, was able to restructure its obligations to all of its creditors, including city pensioners. While the exit plans differed, both judges ruled similarly: public pension obligations could be shortchanged like any other debt.
Stockton and Detroit aren't alone. Cities and states across America are facing catastrophic budget shortfalls. After decades of promising municipal employees pensions and healthcare benefits, municipalities do not have the savings to pay them out. According to a Pew report released last year, some cities had only 50 percent of the funds needed to cover pension promises, and Charleston, West Virgina, had only 24 percent funding. Now, paying off these shortfalls—and serving the debts incurred—is taking up a growing portion of municipal budgets, at the expense of essential public services.
(Excerpt) Read more at newrepublic.com ...
“Let Detroit be a lesson to all: Municipal workers, instead of encouraging crooked mayors who rob your pension funds and steal from the taxpayers to live like a third world king, you need to be holding your administration accountable.”
The unions and the employees themselves robbed the pension fund. They paid nothing into it, and voted to give themselves 13 monthly checks a year. They knew it was doing bankrupt for years and years, but they thought the state taxpayers would be forced to bail them out. They thought wrong. I don’t feel one bit sorry for the commie bastards!
Social Security “adjustments” may not be next but they will be coming.
“Illinois’ public employee pension fund is underfunded by over $115 Billion dollars.”
20% of the entire state budget of IL goes to pay interest on the pension debt, not pensions, just interest on the debt! That state is screwed.
So Illinoisans are now paying more for retirees than for the current system.
Who thinks that taxpayers will keep paying in this situation indefinitely? The pensions will be cut, or people will vote with their feet.
When one con man convinces another to help fleece a mark, it’s pretty unseemly to blame the mark when the first con man runs off with the winnings.
Wonder when they’ll go and take that money and issue warrants like CA did a while back with their teachers. Something banks laugh at.
Exactly right. There are a number of states that have fully-funded pension plans. Most of them have some element of public employee contribution. Several states, notably Illinois, New York, and New Jersey are hoplessly undefunded to the point of being insolvent. And the state’s own actuarial reports show it. The politicians know full well what they are doing, but don’t have the political will to say “no” to the public employee unions.
Speaking of which, anyone know what Jimmy Hoffa did time for? It was looting the Teamster’s Central State Pension Fund. He and his mob buddies treated it like their private slush fund . The politicians in Illinois, New York and New Jersey are doing the same thing.
Start with needs testing-- exactly the solution that the left advocates for social security recipients making too much money as they define it.
In the case of social security, at least, what gets paid out has some relationship with what got paid in.
What you were able to take out was directly proportional to what you contributed. Sort of like my 401(k) plan in the private sector. Imagine that!
More was promised than can be delivered. It is a problem when the party who is expected to pay the bill, i.e., the taxpayer, isn’t a party to the negotiations.
The mayor (or governor, or board of education) has every reason to be generous with people who will vote for him come the next election.
I agree. I don't begrudge any employee, either public or private, their full pension after working the required number of years and attain the required age to start the pension. There are laws governing bankruptcy and those laws are designed to protect low and middle income pensioners..hopefully this will apply.
I expect the same all over the place....
I would believe in govt more if they immediately STOPPED all defined pensions and instead offered 401k's like most businesses do....this would go for the military, the civil service, anybody who works in govt.....
Glad I moved out five years ago. Only return to visit Mom who is too set in her situation to leave.
What makes you think that ALL public employees, past and present, are Progressives? My deceased father was a retired Detroit police executive lieutenant and as far right as anyone on this forum. I can say the same about all the retired Detroit cops I play softball with.......
Do you feel the same way about retirees of the private sector who may see a reduction or complete elimination of their pensions due to their company filing bankruptcy?
As an added bonus, it will make them more interested in the health of the US economy.
I checked on Jersey (only because a neighbor is a retired state employee who retired at 45 and is VERY well off) and the only thing that can be done is raise taxes...
http://blogs.marketwatch.com/encore/2014/04/16/new-jerseys-pension-options-are-limited/
Any states doing it right?
Bankrupt organizations have no pensions. Try to get your pension from LTV steel. The pensions are being paid by the Pension Guarantee Corp. Of America. IE: The U.S. Government and at a much reduced rate with NO health care.
It is time the government worker is put in the same boat as the private sector worker. Get some skin in the game.
Hey, I didn’t say how I would rob them. Maybe I’ll go dig a tunnel into their vault at night. Or rob them with my computer. Either way, if they steal my life savings, that is when I hoist the black flag and go about stealing it back.
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