Federal retirement plans almost as costly as Social Security

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

[GlockThe Vote]

Unless we start telling the da,n truth that EVERYONE is going to take a hit, a total and ending collapse is inevitable.

Many on this site are as self deluding as the far left on DU in this regard.

irresponsible promises were made that could never be kept and young people simply don’t have enough numbers or income to pay for this ponzi scheme.

[muawiyah]

Try your analysis next time by paying interest to the employee deposits as though they were bonds held by the Chicom government.

BTW, some agencies pay additional contributions to the retirement system. Those too are forced loans to the government.

[SunkenCiv]

Still wonder what the death panels are about? Thanks dragnet2.

[businessprofessor]

Try your analysis next time by paying interest to the employee deposits as though they were bonds held by the Chicom government.

I have done plenty of analysis of government pension plans. I have not analyzed federal pension benefits but the benefit levels seem similar to the Florida plan that I have analyzed. The federal plan provides much larger retirement compensation than the Florida plan due to the 401K contribution, early retiree medical care (extending through retirement), early Social Security benefits, and the COLA (CPI-W minus 1). There is no state plan with the federal COLA.

Federal employees as a whole have not paid for their bloated retirement compensattion contrary to your assertion. I am including interest in my calculations. Even if federal employees had paid for their retirement, it would not matter. The pension plan and medical benefits are totally unfunded. Any contributions have already been spent on other parts of government including existing retirees.

[GlockThe Vote]

.amazing how may support a govt sponsored ponzi scheme when they are the beneficiaries of it.

[GlockThe Vote]

Govt workers are mostly mini-madoffs with their pay, benes, and expectations.

[The Mayor]

This will end in a very ugly, complete total collapse

We are so upside down, it will collapse, no question.

[Our man in washington]

Well, I still think it’s overly generous. But continuing CSRS would have been worse. Muahwiyah, if people do work to 90, no problem if they are productive until then. We won’t have to spend much on their retirement. Dragnet2, the Heritage Foundation has done some good work on Federal-private comparisons. It’s not as bad as 2-1 if you take into account the nature of Federal work and locality, but Federal workers still do very well.

A question for conservatives if we stripped government down to its Constitutional limitations, how then should we compensate Federal employees? You’d still need some people working for the Feds.

[Tribune7]

All non-military public pension plans should be defined contribution ones, not defined benefit ones.

[xzins]

I have no doubt that many government workers are honorable and work very hard. That, however, does not mean their jobs are necessary.

[Ciexyz]

As a federal retiree, I have to live frugally and watch my money. I am relieved to finally get a COLA after three years of no COLA. A pox on those who throw stones at us and want to decrease our medical and pension benefits. You did not do our jobs. Probably a lot of you thought our jobs were beneath you. Sorry you are not happy with your choices in life but you could have chosen differently and did not, so do not try to take my modest retirement from me or you will find the entire federal and postal labor force will pull the Democratic lever and not care how many illegal alien trucks roll over the border.

[STARWISE]

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[GlockThe Vote]

LMFAO!!!! What do you think us slobs paying for you, working longer hours, making less money, with no pensions or lifetimes benes do!!!!

GMAFB!!!

[GlockThe Vote]

If they are so good and valuable as many claim, surely they will be able to find gainful employment in the private sector.

[tacticalogic]

Sorry you are not happy with your choices in life but you could have chosen differently and did not, so do not try to take my modest retirement from me or you will find the entire federal and postal labor force will pull the Democratic lever and not care how many illegal alien trucks roll over the border.

So while we watch our 401Ks dwindle and our own retirement plans disentegrate, we'll insure that yours remains intact, or you'll make sure our children end up living in a third world rat hole.

[GlockThe Vote]

These defined benefit plans are ponzi schemes.

[businessprofessor]

Defined benefit pension plans should be banned from all government units. The principal-agent conflict is severe with the principal (taxpayer) separated from the agent by several levels and the agent having strong self interest to continue the benefits. It addition, government pension agencies engage in lobbying and misinformation to deliberately confuse taxpayers and legislators.

[guitarplayer1953]

Entitlement my ___, I paid cash for my social security insurance!!!! Just because they borrowed the money, doesn’t make my benefits some kind of charity or handout!!

AMEN AMEN AMEN TO THAT!

[Eva]

When we encountered the ESOP, was when the company ended the traditional pension program and converted it to an ESOP. I think that the 401Ks came later, in the early eighties.

[af_vet_rr]

ANY PERSON OUT THERE THINKING OF A MILITARY CAREER, THINK AGAIN! Just do your four years, LEARN a skill that can get you employment on the outside and WALK. You CANNOT TRUST the government to keep any promises to you what you might have in 20 years. Oh, wait, they are wanting to do away with the 20 year retirement. You have to set up a 401k plan now.

It's unfortunate, but true. I've had this talk with my son (in the Marines) and my daughter (Air Force). My son had never really planned on reenlisting when his time is up anyways, probably due in large part to our experiences as well as those of his relatives in the military, as well as his own experiences. He's already considering colleges to attend. My daughter plans on sticking it out for as long as possible, but she's a damn fine pilot, has a solid career going, and always has the possibility of entering the private sector as an airline pilot.

In my daughter's case, it makes sense to stick around for a while and see how things are headed 10 years down the road. That option to become an airline pilot is a lot better option than a lot of those leaving the military.