The Comedian's "Economic Holocaust" ping list...
Frowning takes 68 muscles.
Smiling takes 6.
Pulling this trigger takes 2.
I'm lazy.
Posted on 12/21/2010 2:42:02 AM PST by Scanian
AS politicians at all levels of government look to cut spending, taxpayers need to make sure that public employees don't get a free pass -- particularly when it comes to pensions.
Most of the nation's 107 million private-sector workers are forced to accept 401(k) plans and other
defined-contribution pensions -- in which the employer makes a fixed contribution to the employee's retirement account, rather than guaranteeing a fixed payout.
By contrast, nearly all of the more than 22 million federal, state and local public employees enjoy defined-benefit pensions -- with payouts fixed at some percentage of the individual's pay for the last year or two they worked (often including overtime and payments for unused sick or vacation days).
But funding of public pensions has been woefully short of what's needed to make good on those promises. The shortfalls are "off balance sheet" liabilities that run into the trillions of dollars.
Here's the bad news as reported by Professors Robert Novy-Marx (University of Rochester) and Joshua Rauh (Northwestern's Kellogg School of Management):
* Unfunded liabilities for public pensions run by the 50 states total $3.23 trillion -- $21,500 per household.
* Underfunded pensions for municipal and local government employees add another $574 billion of hidden debt -- $14,000 per household.
The data from federal sources is also grim:
* Unfunded US military-retirement obligations now amount to $30,000 per household.
* Unfunded federal civilian-employee pension obligations represent another $16,000 per household.
That means every US household (including the half that normally pay no taxes) would have to kick in $81,500 today to enable federal, state and local governments to meet just their cur rent pension commitments.
(Excerpt) Read more at nypost.com ...
Just take more from the union workers pay and let them pay for it.
Congress needs to change the laws to allow the States to go bankrupt. In this way the States can restructure the retirement of their employees and retirees. There is no other way. Maybe if the states did their job 10-15 years ago the States would not have been in this mess.
We are living in a house of cards, it will soon crash down around our necks.
Companies are not allowed to run underfunded pensions like that. They must file annually with the Dept of Labor and their funding level is defined by law.
Like Galveston County, Texas did in the early 80s
Taxpayers are told ad infinitum that government workers' pensions and benefits are "protected" by the state constitutions. No one can do anything to change them. They are guaranteed!
Well, how come my rights aren't protected by the constitution? How come, while our own retirement funds are dwindling, we are told we need to plan on paying more in taxes to cover the retirement funds of government workers. In other words, even in retirement, we will be paying out of our own funds to pay for theirs.
Taxpayers are told ad infinitum that government workers' pensions and benefits are "protected" by the state constitutions. No one can do anything to change them. They are guaranteed!
Well, how come my rights aren't protected by the constitution? How come, while our own retirement funds are dwindling, we are told we need to plan on paying more in taxes to cover the retirement funds of government workers. In other words, even in retirement, we will be paying out of our own funds to pay for theirs.
Disgusting. Let’s the states and govt collapse.
What a lot of people are forgetting is that the reason most private sector companies dropped their defined benefit plans is that government regs since ERISA have made the administration and funding of them too expensive.
The government plans are not subject to ERISA rules for actuarial soundness or nondiscrimination.
The model cannot sustain itself. Either changes have to be made, or it will collapse like a house of cards. Yet, the unions cheer everytime change is defeated. I think it is beyond time for the membership to wake up. Those in charge of the unions care for no one but themselves.
If you’ve ever been to a union meeting, you know the peer pressure and coercion that is used against the members to get them to not only go along with but to believe in the leadership. When you promise an unending gravy train, you are always going to find plenty of suckers to keep you in power.
Dave:
You are correct. However, each person here can insure that their local governmental units are properly funded. I know many east coast states are a statewide system. However, in Michigan, many are local systems. There is a statewide system also called MERS (MI Employee Retirement System). I am SO glad I am not a part of that system.
Last I checked, my pension was fully funded and is local. However, the definition of fully funded is less clear. Fully funded means that, if all contributions meet or exceed payouts. But this is based on a future model and not a static model.
I am one of those government golden parachute guys. I concur that our system is no longer sustainable and I encourage departments to move away from them. I will not work under a defined benefit system again. It is great for the recipient, not so much for the taxpayers.
The single biggest difference I can see between my pension and most others is that I contributed 8%+ over my years of service. Many contribute nothing with the average of about 3%. Teacher unions in Michigan contribute even less. My pension is wholly locally owned, funded and managed. I would not have it any other way and neither should anyone else. We need to get away from state and federal systems and keep everything local.
I have over 30 years in law enforcement and I am aware of some financially questionable decisions made by our electeds and appointed people. We must hold these people accountable and vote them out.
Yep, it's right there in the IL Constitution. There's no way we can get out of paying these public sector leeches without amending the IL Constitution.
25 months and counting....
I don't care if the IL Constitution says the speed of light will be 2 x c, physics will not be legislated against.
When there's no money, they will not be paid.
Oh I agree. But that doesn't mean the bastards won't try to bleed us even more white than we are now. I read a very interesting thing the other day.
In the city of Chicago every single nickel of property tax collected goes for one thing and one thing only. That's to pay for the pension benefits of retired city 'workers'. Every nickel.
Talk about stuning your beeber....
My Pension is The Lord.
I understand he sends quail and manna in deserts and water from rocks.
You're kidding. Do you thing these lazy thugs are going to let you stop paying? They'll bleed you dry until you fight back...and, that may eventually include shooting.
Parasites don't like losing their host.
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