Posted on 07/24/2010 10:14:01 AM PDT by SeekAndFind
OregonLive reports PERS rates for state agencies will more than double in 2011.
The actuary for Oregon's Public Employee Retirement System confirmed Friday what is already a common-knowledge piece of the state's looming budget shortfall: the cost of funding PERS will increase sharply in 2011.
Mercer Inc. told the PERS board Friday that systemwide, the payroll rates paid by cities, counties, school districts and state agencies to cover their employees' pension and health care benefits will more than double in 2011, from their current level 5.2 percent of payroll to 10.8 percent of payroll.
As of Dec 31, the retirement system had 76 cents in assets for every $1 in liabilities, excluding prepaid contributions. The system's investments declined about 1 percent year through May 31, Mercer said. If they finish the year at this level, the system's overall funded status, excluding prepaid contributions, will decline to about 70 percent, Mercer said.
Actual pension rates vary by individual employer. Employers will learn the exact rate they'll start paying in 2011 in September.
If we finish the year her the system will only be 70% funded. Pray tell what happens if the stock market finished the year down a modest 15% and is flat next year?
Notice the article says "Actual pension rates vary by individual employer". Although the rates will vary, it is not "employers" who pick up the tab. Rather it is taxpayers who have to pay taxes to pick up the tab.
(Excerpt) Read more at businessinsider.com ...
My dad had an old policy a few years back so I googled the name of the insurance company and it showed what’s it’s present day business was called and how to go about making cashing in the policy.
The way public employees have set up public employee retirements is nothing short of treason.
So either they shouldn’t retire or they should have their pensions cut in half? What else can be done? Maybe they can die.
It seems like it’s expensive to have retired seniors, especially as they need a lot of health care. Any suggestions other than the first three I’ve offered (not completely seriously, by the way.)
Studying genealogy rand census records makes it plain what elderly Americans did before Social Security. They lived with their children - or their children lived with them. Large households might make for intergenerational conflicts, but they were cheaper to run. Grandma and spinster aunts could also provide free cooking, childcare and cleaning, while Pops worked at whatever he could as long as his health permitted. That was certainly the system for centuries before that, in both Europe and the Far East.
Maybe we’ll move back to that. It will require some major changes in Americans’ expectations.
Hey! You should be HAPPY about that! It will cut PERS costs! (Just snarkin’ yah)
But really - what can be done? What SHOULD be done?
Over the long term, multi-generational, a retirement program, of any sort, ends up supporting about 4 times the number of people actively employed.
In the past this was covered by the steady growth of the stock market; in the 1950’s the DJIA was around 2,000 - it peaked at 14,000; and is now staying around 10,000.
That covers my parents’ generation. To cover my kid's generation the DJIA will have to grow to and stabilize at 30,000 without inflation causing the majority of the growth.
That is why we must shrink government in size, complexity, and costs.
Otherwise our kids will have to accept a bicycle as luxury transportation.
Sorry, folks. The American private-sector economy peaked in 1999 (amplified by a stock-market bubble). The economy will contract henceforth and so too will the stock market as ever-expanding big government relegates the rapidly shrinking private sector to an ever tinier proportion of the overall economy. Nancy Pelosi and Barack Obama, I fear, have the classic anti-God, big government solution: kill the young, the old, the disabled, the infirm, the inconvenient, those who cost the government money in the near term. We thus shall devolve into a auto-genocidal imploded communist regime. On our current trajectory, I see no other destination.
Firstt: prohibit double dipping.
Second: prohibit double dipping.
Third: prohibit double dipping.
Last is to raise ages and or reduce benifits
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