A problem when you retire at 53 and live to 90.
New York should legalize super late term abortions. Problem solved.
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. “
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.
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.
It boggles my mind why anyone ever thought defined-benefit plans were a good thing.
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.
Cull the herd ...
LOL. Then why isn’t this a massive crisis for every single pension plan? The reality is that the government is trying to blame actuarial tables for their politicians completely overly generous pension benefit give-away that was put in place to get votes for the politicians who voted for it. The crisis happened when the legislature voted for this obscene boondoggle, not now based on some actuarial mistake.
The short answer to “Why do I have to wait so long to catch the bus in Pittsburgh?”
Because over half of their revenue is going to pay guys who retired younger than I am to sit home and watch Jerry Springer.
The country made lucrative pension promises to government workers and didn’t bother funding. Unless I’m wrong, a lot of government workers’ pensions pay them 80% of their final year or two salary. Compare that to social security. By the way, tax payers pay for bot of those pensions.
With direct deposit I suspect a lot of them live long after their death buried in the basement or the back yard.
Public employees who sit at a desk all day are supposed to die early. But they don’t. Another health myth destroyed.