Posted on 08/06/2010 6:07:17 PM PDT by Libloather
Battle Looms Over Huge Costs of Public Pensions
By RON LIEBER
Published: August 6, 2010
There’s a class war coming to the world of government pensions.
The haves are retirees who were once state or municipal workers. Their seemingly guaranteed and ever-escalating monthly pension benefits are breaking budgets nationwide.
The have-nots are taxpayers who don’t have generous pensions. Their 401(k)s or individual retirement accounts have taken a real beating in recent years and are not guaranteed. And soon, many of those people will be paying higher taxes or getting fewer state services as their states put more money aside to cover those pension checks.
At stake is at least $1 trillion. That’s trillion, with a “t,” as in titanic and terrifying.
The figure comes from a study by the Pew Center on the States that came out in February. Pew estimated a $1 trillion gap as of fiscal 2008 between what states had promised workers in the way of retiree pension, health care and other benefits and the money they currently had to pay for it all. And some economists say that Pew is too conservative and the problem is two or three times as large.
So a question of extraordinary financial, political, legal and moral complexity emerges, something that every one of us will be taking into town meetings and voting booths for years to come: Given how wrong past pension projections were, who should pay to fill the 13-figure financing gap?
Consider what’s going on in Colorado — and what is likely to unfold in other states and municipalities around the country.
(Excerpt) Read more at nytimes.com ...
Libertarian ping
That was gambling.
I could have gone to Atlantic City or Las Vegas and probably done as well.
But, the American people thought this was a good thing, and put their hard earned dollars into it.
If anyone is still pouring a huge portion of their income into stocks and T-bills, you have lost your mind.
I love the poster... but...
Using the incorrect “your” on the poster detracts from the message. The poster maker should have used “you’re,” as in “you are.”
A common mistake, but when you’re targeting idiots, it’s best to correct the spelling errors before publication. Yes, I’ve made mistakes, too. We all do. However, this one just jumps off the screen.
Social Security, Medicare and now Pensions.
BOHICA
I am one of these. I paid 8% of my income into my pension. It is limited to the municipality where I worked and still live. Over the years we gave up pay raises and other increases to maintain what we had. For example, local businesses were handing out 8-10% raises one year and we got 3%-5. This was in the 90’s.
However, that being said, the problem is NOT with local areas that have their pensions. Where the problem is severe is state level systems of which many local governmental employees are also included. In Michigan there is MERS which is municipal employees retirement system.
Many of these systems pay out annual cost of living raises such running 2-4 percent per year. There is NO WAY the state system can survive. My pension sytem is more secure and is covered by local dollars.
I concur that under the current sytem municipal pensions are not sustainable and changes must be implemented immediately. However, changes must be made going forward. I cannot change my income in this economy.I have worked all but the last 18 months due to the economy and I do not have access to social security. I have nothing to fall back on except work. Which I am trying to find!
Understand that I think the Bell, CA situation is obscenely stupid. But please use caution about public pensions unless looking at it, in part, through the prism of history.
Believe me when I say this. The money to save jobs for state teachers and first responders which will be voted in on 8/10/10 will go to fund state pensions.
I’m ready for the fight!!! These PENSIONS are RIDICULOUS!! THEY ARE UNSUSTAINABLE!!!!
later
See you soon.
There's one of the main problems right there.
Retirement age should be raised to 70, especially in light of the fact that today's life expectancy is so high.
What's a retired person at 58 gonna do for the next 30 years of their life...mope around the house? Likely most would be happier working. And, if not, they need to plan special arrangements for themselves.
“I see two Americas...”
Gary Justus, one of the lead plantiffs in the suit, retired at age 55!
“If you find the argument of Colorado’s retirees wanting, let your local legislator know that you don’t want to be responsible for every last dollar necessary to cover pension guarantees gone horribly awry. After all, many government employee unions will be taking contrary positions and doing so rather loudly.
If you work for a state or local government, start saving money outside of the pension plan if you haven’t already, because that plan may not last for as long as you need it.
And if you’re a government retiree or getting close to the end of your career? Consider what it means to be a citizen in a community. And what it means to be civil instead of litigious, coming to the table and making a compromise before politicians shove it down your throat and you feel compelled to challenge them to a courthouse brawl.
“We have to do what unions call givebacks,” said Mr. Lamm, the former Colorado governor. “That’s the only way to sanity. Any other alternative, therein lies dragons.””
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To read this coming from the NYT of all sources, one may well take it to be an official communique.
I imagine a lot of them will probably do work elsewhere for a few year while drawing the pension.
But if I'm 65 - that would kinda suck - no? My plans were to mope around the house - and you blow that right out of the water! It crushes every one of my dreams.
WHO THE HELL ARE TOU TO DECIDE ANYTHING INVOLVING MY LIFE?
Do I thank you now - or later?
I’m one of those who decided early in life to work for the public sector. I started at 23 years old and have been paying into my retirement plan for 30 years.
Now, because of the crap that is happening I’m supposed to feel guilty because the whiners didn’t plan as well as I did 30 years ago?
Screw all you aholes!!!
You sound like a government employee.
When you’re living off the largesse of a public that is increasingly strapped for cash, it appears you didn’t so much plan well as just buy a little time before you circle the drain yourself.
Enjoy the ride down, all those you term “aholes” will be waiting for you, lol.
What's a retired person at 58 gonna do for the next 30 years of their life...mope around the house? Likely most would be happier working. And, if not, they need to plan special arrangements for themselves.
Except that there's 15 million unemployed Americans waiting for these older workers to retire. It's a demographic disaster no matter how you look at it.
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