Posted on 02/05/2019 9:29:11 AM PST by SeekAndFind
A problem when you retire at 53 and live to 90.
New York should legalize super late term abortions. Problem solved.
Darn that math thing.
the correctional officer’s union in Cal used to lie and say COs die within 2.5 years of retirement. Since they retired by 55, this was a scary stat. I’m retired 20 years last May. Looking forward to a long life and pension under the old formula, as is my wife.
And states had laws and state constitutions that defined marriage as between one man and one woman.
All it took was one Federal judge to null/void.
++++++
“That’s because these states have laws or constitutional provisions that limit the ability of governments to alter pensions for current workers for as long as they remain employed. Among other things, governments often can’t require higher contributions from workers themselves; nor can they lower benefits. “
On a related note, by law the social security fund can invest in only 1 thing: U.S. treasuries.
Fuzzy math and politics made this inevitable.
Can I ask a stupid question??
How are there “unfunded liabilities”?????
Because, aren’t there legal requirements to deposit required amounts into the pension funds?
I understand the liabilities have grown, due to longer life expectancy, but aren’t they setting aside money ?? Aren’t there legal requirements as to how pension funds are accounted for and administered?
It’s hard to believe, that they can report there are large unfunded liabilities, and then nothing is done to take care of the problem.
The state ofCal is governed by CALPers. The frequently phony up the projections of investment income to justify increases in payments. And the unions support it and bribe the politcans that vote for the union contracts and benefits.
Icing on the cake: The Cal constitution requires the state to provide funds for any shortages in the pension funds.
The state = taxpayers. And, there ought to be a law to prevent this.
One of my former neighbors was a retired LA city fire Captain. He retired at 55 years old with a full medical. His retirement pay is $135,000(at retirement) with full medical benefits. He will live well into his 70’s. That is just plain crazy.
of course. But it;’s been in the constitution since the pension started, i think in the 50s. The unions and the democrats don’t care what it’s doing to the state. I benefit, even under the old formula, and I know how the system is corrupt. You can’t do much about 72 year olds like me, but Brown was in for 8 years and could have changed it for new hires, and younger employees, and did nothing.
yeah, no maximum. In law enforcement and fire fighting they tack on last year promotions and overtime to bump up your formula with a high paying last year on the job.
I read a book a few years back called “While America Aged: How Pension Debts Ruined General Motors, Stopped the NYC Subways, Bankrupted San Diego, and Loom as the Next Financial Crisis” by Roger Lowenstein which addressed this issue.
There were lots of reasons that contributed but the main one was that is is much easier to promise an increased pension many years in the future that will be paid by future taxpayers rather than offering a pay rise this year which will be paid by current taxpayers.
NYS has the same issue. They are aggressively changing the pension enrollments for new hires to a 401k type system. If they can make it another 30 years they should me O.K. ;)
It boggles my mind why anyone ever thought defined-benefit plans were a good thing.
well that’s something. They could also do employees under 40, give them what they have paid and let them, do their own from here on out. Save the employers contribution up to this point and no employers after this.
Case in point - If a couple has worked enough to give the federal government $25,000 per year in taxes, then at the end of a 40 year work life, they would have $1,000,000.
And that does not include the interest they would have accrued along the way.
Shift to age 60 and 65% pay and see how the projections change.
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