Sunday, March 6, 2011

Why Employee Pensions Aren't Bankrupting States

McClatchy News reports:

"A close look at state and local pension plans across the nation, and a comparison of them to those in the private sector, reveals a more complicated story. However, the short answer is that there's simply no evidence that state pensions are the current burden to public finances that their critics claim."

Find out why at the link below.

5 comments:

  1. I think this is called whistling in the dark... or whistling past the graveyard. Or the bankruptcy court, as it were.

    ReplyDelete
  2. Rose, all investments were impacted by the speculation that occurred after the repeal of Glass-Steagall with Graham, Leach, Bliley. To blame this bankster, Phill Graham scheme on workers and the money that they put aside for retirement is stupid.

    It's like saying that Social Security is broke when I know that I'm not using it but I am funding it every week with my check.
    It is funded better than the rest of the government because it wasn't put into a big pool to be speculated on. It wasn't in the stock market like the retirement funds for private and city worker were. I can't believe that people still, after this example want to privatize Social Security. If Bush had succeeded in doing so, there would be starving, old and disabled people on all of the sidewalks.

    You are either fabulously well off or buying into the crap that is designed to divide the few people in this country that still have jobs. The private investments will in the long run, bounce back and therefore be solvent. If not we need to seriously consider changing the way we allow capitalism to work in this country. We make the rules that capitalists must abide by. You are making the argument that those rules are in fact broken.

    ReplyDelete
  3. A public worker had this to say on the subject at the Humboldt Herald.

    Anonymous says:
    March 6, 2011 at 4:46 pm
    HiFi at 311. You are just plain wrong on many of your statements.
    I’m a government worker.
    1. I pay into my retirement every month. I also will not receive social security even though I paid into it years ago in my private sector job – the state views that as “double dipping”.
    2. I’d be a fool to retire at 55 even though it is allowed. The only way it would make sense is if I began my government job at 20 and put in 30+ years. Most government workers will not get the percent you cite until they are 60+ (with the exception of the perhaps the military).
    3. My friend works for a large private corporation and gets 4 (or is it 5) weeks of vacation a year.
    4. I’ve worked in the same profession in both the public and private sector and I made more in the private sector, and I got MUCH more in per-diem and travel expenses. I get more satisfaction in the public sector because I spend more time helping people than making a profit from their problems.

    Just so you know, I saw more waste in the private sector, but it was passed onto the client/customer. In contrast, I’ve never seen a group squeeze more out of $100 than teachers trying to make supplies last. They usually spend out of their pocket.
    Let stop the myth of the lazy overpaid public employee.
    Most people work hard in both the private and public sector. There are lazy people and opportunists, but they are NOT the norm and they exist in both worlds. I’ve seen it first hand.

    ReplyDelete
  4. Well, Tom, it is wrong to take away the SS from the person who paid in - that's basically stealing. But who cares - you're right - it's all golden - there's plenty of money, they just need to pull it out of their - never mind.

    I don't understand this strange ability to deny reality. It's rampant. It's not just this issue either. By the time you guys realize - it will be too late.

    ReplyDelete
  5. The headline is wrong. It should read: Why PUBLIC Employee Pensions ARE Bankrupting States.

    Most Orange County and Los Angeles County employees do NOT pay ANYTHING into their retirement. The worst pension you could receive at Orange County is 2.7% at 55!!!

    A local city employee pointed out that most clerical workers in their city are still in a 2% at 62.

    So, I will say that WE (media, conservatives etc.) paint ALL public employees with a broad brush, the fact remains that PUBLIC employee pensions are DESTROYING my city's and county's ability to address other issues.

    The premise that ALL people are ENTITLED to retirement benefits is false. To obtain the benefits or retirement, one has to work AND save a portion of the fruits of their labor. Asking an employer to withhold some of your salary and place it into an account is one way to do it. Asking taxpayers to pay for it is another. The latter represents what is wrong with the public employee pension system.

    AND MOST IMPORTANTLY: I do not blame the employees for creating the problem. I blame the negotiators and the elected representatives who agreed to the rates and system.

    ReplyDelete

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