Federal retirement plans almost as costly as Social Security

http://abcnews.com ^ | 10.2.11 | DENNIS CAUCHON

[dragnet2]

Retirement programs for former federal workers — civilian and military — are growing so fast they now face a multitrillion-dollar shortfall nearly as big as Social Security.

The federal government hasn't set aside money or created a revenue source similar to Social Security's payroll tax to help pay for the benefits, so the retirement costs must be paid every year through taxes and borrowing.

The government paid a record $268 billion in pension and health benefits last year to 10 million former civil servants, military personnel and their dependents, about $100 billion more than was paid a decade earlier after adjusting for inflation. And $7 billion more was deposited into tax-deferred accounts of current workers.

In addition, the federal government last year made more than a half-trillion dollars in future commitments, valued in 2010 dollars that will cost far more to pay in coming decades. Added last year:

$107 billion in retirement benefits accumulated by current workers.

$106 billion in new benefits granted to veterans. Retirement

More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.

The government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.

The retirement programs now have a $5.7 trillion unfunded liability, compared with a $6.5 trillion shortfall for Social Security.

Outgoing Defense Secretary Robert Gates told Congress in June in his final budget testimony that health care costs "are eating us alive."

Rep. Jim Cooper, D-Tenn., a member of the Armed Services Committee, says retirement benefits are an extremely sensitive issue. "We have a disconnect between all these sacred promises we've made and how they are not backed up by anything," he says.

[RetiredArmy]

Thanks Lurker. I did it because it was what I had always wanted to do. Back when I was a kid, in the 50s & 60s, we all played cowboys and indians or “army” in the woods behind our homes. I grew up wanting to be a soldier, in the military. It was what I wanted to do. Plus, that was in the years right after WWII and I knew many WWII vets and my dad was. But, as the years went along, I got to the point that I knew we were going to get screwed. Even back in the late 1980s, I told some guys that one day all we would have left was the pay check, IF we were lucky enough to hold on to that. I watched, too late in a career to quit, that we were getting screwed. The more it happened, the more my disgust for the government grew. While I LOVE my country, America, I would not give you a plug nickle for the entire US government. While they cut all ours, theirs continue to grow, grow, grow.

[dragnet2]

It's not just the feds destroying the private sector and the entire economy.

I know of cops, who retire at 50, and are now making $75,000+ per year in tax paid retirement for the rest of their lives, this includes top shelf, tax paid medical benefits for not only the government retiree, but their wives.

Now the cities and counties are all going broke as the U.S.

Wait until all this goes belly up.

[GlockThe Vote]

Bingo - the public sector is eating the private sector alive and there is simply not enough workers to cover promises that should never have been made in the first place.

Either these public sector maddoffs take a haircut or they should get nothing at all.

These leeches have no clue how good they have it.

[dragnet2]

And where do you think they park these pensions?

They parked them right on top of the tax payers, who if they still have jobs, are making about *half* the income of what government retirees are collecting in bloated tax paid retirement pensions.

This is all going to hit the wall hard.

[GlockThe Vote]

Good post.

SS, Medicare, and the entire US Govt is little more than a ponzi scam.

[Soul of the South]

We all have our moments. No apology required. You and I are both Americans with a passion for liberty and great concern about our country’s future.

Have a great day! God bless you and your family.

[dragnet2]

Bingo - the public sector is eating the private sector alive and there is simply not enough workers to cover promises that should never have been made in the first place.

I never promised them anything.

They are literally dragging the entire country down, so they can retire at 50, with lottery style pensions. This is crippling our economy, no joke.

And all this, while the private sectors wages have been stagnant for a decade, and now most private sector folks have had their hours slashed, taken pay cuts, benefits medical insurance cut or reduced to near worthlessness...If they still have jobs, all while the cost of everything has nearly tripled...

This will is going to get really ugly. Bet the rent.

[GlockThe Vote]

I have a friend who is a cop who I got in a huge argument with over this.

He will retire at 45 Y/o w a pension of oabout 90k a year for life, plus medical, so say that at least 110k since his whole familiy is covered.

This is after 20 years.

I asked him how much after tax income he would need to put away over 20 years for an annutiy company to give him that type of income for life.

He simply could not grasp what i was telling him.

Same goes for teachers.

I have so little patience for people who work for the govt and cry like B^&$$ over this.

Most Wall Street Execs donty even get deals like that.

[dragnet2]

He will retire at 45 Y/o w a pension of about 90k a year for life, plus medical, so say that at least 110k since his whole family is covered. This is after 20 years. I asked him how much after tax income he would need to put away over 20 years for an annuity company to give him that type of income for life. He simply could not grasp what i was telling him. Same goes for teachers.

This is quite common and the reason the private sector is becoming extremely angry.

Eventually the lid will blow off.

[GlockThe Vote]

I simply don’t see any mathmatical forumla to where this can possibly work out.

I’m not kidding - and to boot - most of these pension scams assume 8% rate of return on the DOW compounded!

let that sink in after 10 years of zero growth!

[dragnet2]

I seeing visions of government employee union bosses handing out clubs to fend off the beaten down, pissed off private sector.

Did ya know there are now more unionized government employees than those in the private sector?

[GlockThe Vote]

The problem is that in many areas the property taxes are exploding to cover these criminal level costs making the homes unmarketable and simply unsellable.

Its outrageous and I look at govt workers refusing to curtail these abuses no different than I do robbers and burglars.

They are robbing us blind with demands and benes that are simply madoffian.

[dragnet2]

They have their tax paid salaries, pensions and benefits, and they have no desire to have it taken away. You can tell who the government employees are, for the most part they’re the ones in the neighborhood who are still buying new cars, adding on to their homes, purchasing newer homes etc, while those in the private sector are just struggling to pay their monthly mortgages, if they still have homes, jobs etc.

[GlockThe Vote]

Do you live in Yonkers NY by any chance? You describe my neighborhood perfectly.

Every cop and firemen has a new BMW or mercedez - adding additions on houses, etc, all while the rest of everyone is getting killed.

People even in their young 30’s have no hope over owning a home considering the 10k a year taxes on every home to pay for these thieves and are usually forced to move away.

I hear all this “first responders” nonsense and want to puke.

[dragnet2]

Every cop and firemen has a new BMW or mercedez - adding additions on houses, etc, all while the rest of everyone is getting killed. People even in their young 30’s have no hope over owning a home considering the 10k a year taxes on every home to pay for these thieves and are usually forced to move away.

Yep...The old public servant class have become the public protected class, complete with government union mob bosses.

Who would have ever thought, government would demand $10,000 a year, for tax on a home? Then throw in all the other concocted government taxes.

Out of control does not begin to describe this travesty and betrayal.

[dragnet2]

This part just bends the brain...

----------------------------------------------

More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.

The government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.

[nascarnation]

There are FAR more folks on Social Security and private pensions / 401ks than there are public retirees.

So as the crushing debts come due, a majority of voters will logically vote to make the “adjustments” on the public side.

[dragnet2]

The government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.

I keep reading this....more money to 10 million government retirees, than 54 million on Social Security. So what are the government retirees costing us?

A trillion a year?

[GlockThe Vote]

Just who the hell do these madoffs think is going to pay for all of this?

[TheOldLady]

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