Posted on 12/23/2010 2:45:34 AM PST by abb
PRICHARD, Ala. This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.
Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.
Since then, Nettie Banks, 68, a retired Prichard police and fire dispatcher, has filed for bankruptcy. Alfred Arnold, a 66-year-old retired fire captain, has gone back to work as a shopping mall security guard to try to keep his house. Eddie Ragland, 59, a retired police captain, accepted help from colleagues, bake sales and collection jars after he was shot by a robber, leaving him badly wounded and unable to get to his new job as a police officer at the regional airport.
Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. When they found him, he had no electricity and no running water in his house, said David Anders, 58, a retired district fire chief. He was a proud enough man that he wouldnt accept help.
The situation in Prichard is extremely unusual the city has sought bankruptcy protection twice but it proves that the unthinkable can, in fact, sometimes happen. And it stands as a warning to cities like Philadelphia and states like Illinois, whose pension funds are under great strain: if nothing changes, the money eventually does run out, and when that happens, misery and turmoil follow.
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(Excerpt) Read more at nytimes.com ...
A competent government workforce can be hired and retained with retirement compensation inline with the public sector.
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.
Yonk yonk...Not hardly...We got people out here impersonating illegal aliens so they can avoid criminal charges.
“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.
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?
“The government tit has run dry...”
And it’s a little drier tonight...
http://blog.al.com/live/2010/12/three_prichard_police_cars_bur.html
I went in in ‘64 and that was still the promise.
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