Posted on 11/12/2010 7:40:02 AM PST by rightwingintelligentsia
Teacher pensions may not sound like a sexy or even high-profile issue, but keep reading: they're threatening the fiscal health of many states and could cost you yes, you thousands of dollars. And, like the savings-and-loan crisis at the end of the 1980s or the current housing-market mess, insiders see big trouble ahead in the next few years and are starting to sound warnings.
Today there is an almost $500 billion shortfall for funding teacher pensions, and that gap is growing. Why should you care? Because ultimately taxpayers are on the hook for that money. But the problem doesn't just end there. The way teacher pensions operate is badly suited to today's teacher workforce, where 30-year careers are no longer the norm. The current setup penalizes teachers who move between states, switch to private or public-charter schools that do not participate in the pension system or leave teaching altogether. Meanwhile, it becomes financial suicide for teachers to change careers after a certain point, even if they no longer want to teach or are not good at it.
(Excerpt) Read more at time.com ...
Let them eat cake.
Only if we vote for schmucks who continue to fund the pension payouts.
ML/NJ
Every one of these articles assumes unions won’t have to share the pain- all of the costs are to be borne by the tAxpayer. Uh, newsflash- that ain’t the way it’s going to go down
Many “teachers” (note: not ‘educators’) can retire at more than 100 percent of their base salary when COLA’s are factored in. Its a racket that must be stopped.
So people in the private sector’s pensions got wiped out.......we’re going to have a bailout for everybody? /s
F’ em.
Let’s get some things straight. Teachers pensions used to be seperate funds and teachers participated in the gain or loss of those funds in the market.
However, a few years ago the stock market made major gains and teachers pensions look pretty good. Then the legislatures got greedy and confiscated the funds with the promise that the government would give the teachers gauranteed benefits instead.
Even those gauranteed benifits have been eroded. In one state it changed from 2% per year to 1.5% per year. That means that a teacher would have to work for 66 years to get a pension that’s equal to their salary.
Let them GO BANKRUPT!!!... Teacher Union busting legislation needs to be passed..<br.
So that you can be a teacher without Union affiliation..
Another change we need congress to consider — only unions with completely funded pension programs can spend money on politics. If we are on the hook for any part of their pension, no political spending for them.
If SEIU keeps getting foreign money, they can use it to pay on their pension funds before the pay the purple shirts to go out and beat down on patriots.
Why in the hell am I on the hook for somebody else's pension fund? Are teachers on the hook for my 401(k)? Do I have the freedom to opt out of paying social security taxes like teachers do? I have zero sympathy for this. If their managers made poor unethical decisions regarding their employee pension funds (such as siphoning off some of those funds and giving that money to the DNC), then those people should be held accountable with long prison sentences just as managers at Fidelity Investments or Charles Schwab would be if they misappropriated client funds.
First, send some NEA union bosses to prison, and then we can talk about why they won't be getting a bailout from the taxpayer.
Fast forward to today... my current (different) company had a 401(k) match, but it was eliminated 3 years ago... it may come back next year.
My question I guess is are these school districts required by law to provide a pension and if so, why do they have to contribute to it as well (why isn't it just what the teacher contributes)?
Or is this a union/contract thing where the union and school districts have negotiated a contract to fund the pensions and guarantess a rate of return?
Please make me smarter on this. Thank you.
I would like to know the answer to that myself.
When Palin was in power, she tried funding the program. She knew who caused the entire funding problem; our own Repubs and she didn't want them to suffer down the road when the truth be told.
So there really is 2 sides with our teacher pension plan in Ak; and my own Repubs are mostly responsible for our current teacher pension problem; no joke.
The taxpayers supporting the soft, sheltered life of the academic. A familiar and sad story.
But y’all would be well advised to check out the financial shenanigans going down in your local fire district as well.
After all, YOU are paying for it.
“Do I have the freedom to opt out of paying social security taxes like teachers do?”
Just fyi, instead of paying SS they pay into their retirement. And if they worked outside jobs long enough to earn the quarters required by SS to draw it, they’re penalized dollar for dollar of their monthly retirement.
Not every state has these multimillion dollar pension funds.
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