Posted on 11/08/2009 8:11:52 PM PST by FromLori
Bankruptcy, taxpayer bailouts appear inevitable.
States and municipalities are in deep financial trouble. Pension performance has faltered. Over a trillion dollars worth of municipal pension fund assets have been erased in the recent market meltdown. The average public pension plan is 35% under-funded, and things are getting worse.
A wave of municipal bankruptcies could well follow.
To avoid such a fate, there are three possible responses cities and towns can take to the problem of under-funded pension plans. None of them are appealing. First, it's important to understand that "under-funded" basically means municipalities lack the money in the pot to pay for all the obligations they've made to their employees.
The first solution is to put more money in the pot. In the case of public pensions, that money has to come either from public employees--who have successfully lobbied against this since the dawn of time--or from you and me--the taxpayers. The trouble with the taxpayer solution is that we are tapped out. Even if amid high unemployment and stagnant wages we could up with a lot more money, none of us are exactly keen on paying higher taxes to pad the retirement benefits of government workers whose pensions already vastly exceed those private sector workers are likely to receive.
The second possible solution to the pension mess is to take less money out of the pot, meaning decrease benefits. This solution is off the table as well, because in most cases government workers are legally entitled to any benefits already granted. What's more, their politically powerful unions have proven highly adept at fending off even future benefit cuts.
A third possible solution is everybody's favorite: The magic bullet. Under this scenario, what money is on hand to cover pension promises is invested in financial markets, which defy past performance
(Excerpt) Read more at forbes.com ...
We are all servants of the State. Past employees of the State expect comfortable retirements, and we must all labor to make this possible for them. Our own lives, our own retirements, must take a backseat to the needs of our betters. We are but peasants.
The unions such as SEIU are sucking the states dry. Of course they are aided by the dimoKKKRATS.
Can’t say I feel bad for them.
The choice is quite easy. It may be unpleasant for some, but the eventual payouts will be smaller than promised one way or another - through reduced benefit amounts or inflation.
I feel bad for us the peasants clearcut guys analysis seems to be right on we are nothing but servants of the state.
know how to use a pitchfork?
Make people put in forty years. Don’t pay out pensions until 65, or 67. A job like firefighting which is physically stressful, maybe they can retire after 25 or 30 years but not collect until 65. In the meanwhile, another job, or if they still feel and test fit, they can keep firefighting.
No adding sick or vacation pay to salary for calculating pension. Caps on the amount of sick or vacation pay that can be paid out.
none of these pensions are reasonable nor affordable...
we think SS is a scam?...well the public pensions are 10x worse....
I tell ya if my tax burden gets any heavier I'll just stop working and stop paying taxes...I'll fudge to get on disability and let others worry about paying....
why work if there is no incentive...
Yes and guns.
Sell your city property and move to a rural area, quick.
They will get their money even if your family starves.
A predominately Black city here in South Alabama has already gone bankrupt and not paying pensions, see below.
Life without Prichard pension: Couple's savings could be gone by Christmas
I took care of a 49 y.o. yesterday for elective surgery....minor, a hernia.
Making small talk, I asked the guy what he did for a living...he told me “I’m retired”...retired from a state job here in MO. “I put 25 years in!” was his reply...
Perfectly able, no medical problems...he’s retired on a state pension, and I’m still working with a private pension plan that is going down yearly.
Great system we have! I love working to provide his ‘pension’ for the next 30 years!
I did already sold the house in the twin cities rented a little while waiting for prices to drop then last Nov. moved here to rural Western Wisconsin I figured things were going to get very nasty.
Pray for America's Freedom
I'm closer to the city than I like.
I had a wealthy friend ask me last week if I would go with him to Texas to look for remote property to buy and build a bunker/survival camp...I am not kidding. I was suprised.
I asked why Texas and he said they'd be the first to leave the union and Texans know how to take care of business.
I retired from Texas Instruments in Houston...So (ahem) I have a residency claim to the country of Texas.
Come on, these people are entitled to the pensions promised for their service - it is of course the elected officials who spend tax money on trash, cronies, and bribes to the electorate, rather than fund commitments made who are to blame.
Isn't there a fund that props up bad pensions? Or is that already broke too?
I've never lived in Prichard and I'm not denying them their pension. Nothing in Prichard works correctly, it is a poorly run city.
Besides...I think this is just the tip of the iceberg for many cities, counties and states. Before I die, I expect to see three generations of a family living together
Cut the Gordian Knot!
I sure wish there was something to look forward to. I would love to be optomistic about America’s future but I can’t. And we have sooooo much. Simply amazing. It’s not like we lost the ability to make steel, burn coal, pump oil, build nuclear power plants, log our forests, plant our fields, raise our cattle and livestock, build and sail our ships.
What the hell happened???
I have read a couple of articles in the past few days saying the same thing about Texas. Are you going to go check it out?
This article actually talks about that though it’s from 2000
http://economics.gmu.edu/wew/articles/00/company.html
On a side note do you remember those fall out shelters people used to build in their yards? Back in the day when you practiced radiation drills in school like you did fire drills? lol I came across the plans for those.
http://bluelori.blogspot.com/2009/11/fallout-shelter-design-booklet.html
chop. chop. chop. Cut the pensions down to the point where we can afford to pay. Private pensions could never match the largesse afforded “public servants.”
We quit holding our elected to account.
I think they are planning on US being the fund in the form of bailouts.
remember when the Steel industry went under...lost pensions..ask the stewardesses how much their getting of their promised pensions...too freaking bad.
The parasites have sucked the blood out of their host and are in trouble.
Boo.
Freeking.
Hoo.
Probably.
You can’t reduce benefits which are “vested”; however, you can reduce the level of benefits for future service (for both current and future employees).
What the hell happened???
We quit holding our elected to account.
Not from there but I spend a lot of time in Oregon. These people are so naive it's like depending on your twelve year old for investment advice.
Not so sure about that.
If taxpayers are slaving so people can retire at 50 or so I say let the pensioners work a few more years.
And stop hiring so many additional workers for the future pension dole. Of course, the newly passed health care bill will ensure that there will be a whole lot of new public workers.
I’ve posted this previously on other threads, but I will say it again as it is upsetting.
The loss is pension investments in the Pennsylvania Teacher’s Defined Benefit Pension Plans (same as described above) resulted in an increase in actuarially computed required pension contributions for the current year of 26% of payroll. In the past it had been 5-6% per year.
In 2009 our Govenor took half of O’Bummer’s stimulus money for our state and gave it to the teacher’s pension to cover the underfunding..(to pay his political debt) (Wonder how many of these jobs were counted as jobs saved!)
Bottom line, next year there will be no stimulus money and every school district in the state will be bankrupt. Watch out taxpayers!
I think many missed that part. Way more pension woes all around the country.
http://www.signonsandiego.com/news/2009/nov/08/critics-spending-to-blame-for-woes/
http://www.chicagotribune.com/news/chi-editorial-p1-geckonov08,0,2733100.story
http://www.trib.com/news/opinion/editorial/article_b43365f1-8f45-56bd-8530-745bfa12514a.html
http://www.palmbeachdailynews.com/news/content/news/2009/11/07/pensionmain1108.html
“I sure wish there was something to look forward to. I would love to be optomistic about America’s future but I can’t. And we have sooooo much. Simply amazing. It’s not like we lost the ability to make steel, burn coal, pump oil, build nuclear power plants, log our forests, plant our fields, raise our cattle and livestock, build and sail our ships.
What the hell happened”???
I believe we’ll be going back to that time in history very soon here. Our currency will be worthless, we won’t be able to subcontract those services and industries out to 3RD world Countries anymore. Ironically, our financial collapse might just be the spark for our industrial and spiritual resurgence. We can’t live in a bubble economy forever that doesn’t produce anything of value.
I agree. There is no Algore “lockbox” for anything, Social Security, pensions, etc. These are paid out of reciepts.
That means ALL monies doled out are not sacred but subject to being cut. No exceptions.
If I’m not protected by my employers pension plan, govt workers sure as hell are not.
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