Alabama Town’s Failed Pension Is a Warning

A competent government workforce can be hired and retained with retirement compensation inline with the public sector.

I know the benefits of the Private sector, I have friends who will be working until the day they die.

Carpenters, Plumbers, Laborers, Friends who had placed their money in stocks and savings accounts that now earn 1.2 % or less, Stocks that went bust, 401 K’s that crapped out. Their money eaten up by bad economics, bad policies and now QE2, the inflation that will eat what’s left.

Economies torn to shreds by Business Professers who gave bad advice to politicians, who took that advice.

“I understand. you would work the hell out of people and give them nothing in return.”

Nonsense. They will get a generous contribution for their retirement. If they are disabled, they will be eligible for disability. For retirement, the combination of an employer contribution of 10 percent and employee contribution of 10 percent should compound for good retirement savings. If the government agency has elected Social Security, the employer and employee would pay payroll taxes and be eligible for those benefits. If not, the payroll tax amounts could be saved for retirement also.

I live in small city without any defined benefit programs. We can hire and retain a competent law enforcement staff without defined benefit pensions.

I reject the idea that law enforcement cannot work past age 50. Most law enforcement retire and the work in the private and public sector again. Many law enforcement falsely claim disability at retirement age. Although I am a strong supporter of law enforcement, I do not think that anyone (including law enforcement) deserve EXTRAORDINARY retirement compensation. Law enforcement pensions are extraordinary retirement compensation sometimes amounting to millions of dollars of surplus deferred compensation beyond the employee/employer contributions with interest. The taxpayers cannot afford extraordinary retirement compensation for anyone.

You would have police and Firefighters work through the nights in dangerous jobs and give them the same as a clerk in an office.

Driving a cab in many regions of this country is more dangerous than any firefighter or cop job. Should cab drivers retire at 50 years old with $75,000 to 250,000 in tax paid retirement for life? Other professions are labor intensive, where those performing those jobs are physical wrecks by the time they are 45 years old...What about them?

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