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Posted on 10/24/2011 5:34:32 PM PDT by dragnet2
Retirement programs for former federal workers — civilian and military — are growing so fast they now face a multitrillion-dollar shortfall nearly as big as Social Security.
The federal government hasn't set aside money or created a revenue source similar to Social Security's payroll tax to help pay for the benefits, so the retirement costs must be paid every year through taxes and borrowing.
The government paid a record $268 billion in pension and health benefits last year to 10 million former civil servants, military personnel and their dependents, about $100 billion more than was paid a decade earlier after adjusting for inflation. And $7 billion more was deposited into tax-deferred accounts of current workers.
In addition, the federal government last year made more than a half-trillion dollars in future commitments, valued in 2010 dollars that will cost far more to pay in coming decades. Added last year:
$107 billion in retirement benefits accumulated by current workers.
$106 billion in new benefits granted to veterans. Retirement
More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.
The government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.
The retirement programs now have a $5.7 trillion unfunded liability, compared with a $6.5 trillion shortfall for Social Security.
Outgoing Defense Secretary Robert Gates told Congress in June in his final budget testimony that health care costs "are eating us alive."
Rep. Jim Cooper, D-Tenn., a member of the Armed Services Committee, says retirement benefits are an extremely sensitive issue. "We have a disconnect between all these sacred promises we've made and how they are not backed up by anything," he says.
(Excerpt) Read more at abcnews.go.com ...
Unless we start telling the da,n truth that EVERYONE is going to take a hit, a total and ending collapse is inevitable.
Many on this site are as self deluding as the far left on DU in this regard.
irresponsible promises were made that could never be kept and young people simply don’t have enough numbers or income to pay for this ponzi scheme.
BTW, some agencies pay additional contributions to the retirement system. Those too are forced loans to the government.
Still wonder what the death panels are about? Thanks dragnet2.
.amazing how may support a govt sponsored ponzi scheme when they are the beneficiaries of it.
Govt workers are mostly mini-madoffs with their pay, benes, and expectations.
We are so upside down, it will collapse, no question.
Well, I still think it’s overly generous. But continuing CSRS would have been worse. Muahwiyah, if people do work to 90, no problem if they are productive until then. We won’t have to spend much on their retirement. Dragnet2, the Heritage Foundation has done some good work on Federal-private comparisons. It’s not as bad as 2-1 if you take into account the nature of Federal work and locality, but Federal workers still do very well.
A question for conservatives if we stripped government down to its Constitutional limitations, how then should we compensate Federal employees? You’d still need some people working for the Feds.
All non-military public pension plans should be defined contribution ones, not defined benefit ones.
I have no doubt that many government workers are honorable and work very hard. That, however, does not mean their jobs are necessary.
As a federal retiree, I have to live frugally and watch my money. I am relieved to finally get a COLA after three years of no COLA. A pox on those who throw stones at us and want to decrease our medical and pension benefits. You did not do our jobs. Probably a lot of you thought our jobs were beneath you. Sorry you are not happy with your choices in life but you could have chosen differently and did not, so do not try to take my modest retirement from me or you will find the entire federal and postal labor force will pull the Democratic lever and not care how many illegal alien trucks roll over the border.
LMFAO!!!! What do you think us slobs paying for you, working longer hours, making less money, with no pensions or lifetimes benes do!!!!
GMAFB!!!
If they are so good and valuable as many claim, surely they will be able to find gainful employment in the private sector.
So while we watch our 401Ks dwindle and our own retirement plans disentegrate, we'll insure that yours remains intact, or you'll make sure our children end up living in a third world rat hole.
These defined benefit plans are ponzi schemes.
Defined benefit pension plans should be banned from all government units. The principal-agent conflict is severe with the principal (taxpayer) separated from the agent by several levels and the agent having strong self interest to continue the benefits. It addition, government pension agencies engage in lobbying and misinformation to deliberately confuse taxpayers and legislators.
Entitlement my ___, I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn’t make my benefits some kind of charity or handout!!
AMEN AMEN AMEN TO THAT!
When we encountered the ESOP, was when the company ended the traditional pension program and converted it to an ESOP. I think that the 401Ks came later, in the early eighties.
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