>>I think the poster was saying that if government jobs didn’t promise defined benefits instead of defined contributions, leading to unsustainable pensions far beyond counterparts in the private sector, then a larger share of the budget could go to improving the situation of present day employees.
Most government jobs are just jobs. But some of them: police, fire, utilities demand a physical commitment that goes beyond the job. My ankles and back are shot from 30 years of working in electric and water utilities. My commitment to the job is 24/7 because when the phone rings, I’m expected to answer and go. If the utility business didn’t pay well with a great pension, I never would have done it after the first 5 years because the deferred compensation is the real reward after a lifetime of answering the phone and going out to keep civilization running.
When you look into an “unsustainable” pension, you’ll find a government that decided to not make contributions in the 90’s because the analysts said the stock market gravy train would go on forever. But, the employees still made their contributions every payday.
State and local government pension shortfalls are something like $5 trillion. I think that was caused by more than just inadequate investments over twenty years ago.
“When you look into an “unsustainable” pension, you’ll find a government that decided to not make contributions in the 90’s because the analysts said the stock market gravy train would go on forever.”
Maybe where you live, but here in IL the situation is far, far worse. Under the “old” pension system government workers were promised outrageous retirement benefits. Things like 80% of the average of their last 3 years pay, for LIFE, plus medical benefits. Some municipalities even made them assignable to spouses. And these ridiculous plans began after only 20 years of service.
In my town our Police Chief “retired” after 20 years and is getting a $115k a year. He was promptly hired as the Village Manager at a salary of $165,000. He’s 52.
You do the math.
My property tax bill, which we just received, is itemized and shows that fully 2/3 of it goes to pension plans for one taxing body or another. Teachers, firefighters, librarians, Village and County Office drones, you name it and they get it.
It’s insane and it’s all guaranteed under the Illinois State Constitution. They can’t be touched. That’s already been litigated all the way to our State Supreme Court.
It’s not the salaries that are the problem. It’s the “benefits”. Newer hires are under a slightly less insane plan but that doesn’t do any good now. They could literally tax away every single dollar here in IL and it still wouldn’t meet what’s been promised.
So, as usual, NPR is lying by omission.
L