Readers say Public Sector Pensions Have Become Nothing more than well-organized defrauding of taxpayers
This is nothing more than well-organized defrauding of taxpayers. The unions have full time officials and lawyers looking for every way possible to way to increase benefits whether they are sustainable or not. It’s easy to spend other people’s money through these generous contracts; until it runs out. Then you become Detroit or Stockton.
It worked when Public Sector salaries were a fraction of Private Sector salaries and people’s life expectancy was 65 years or less and our country was growing consistently and robustly. Now that the Public Sector has enjoyed tremendous growth both in the number of people employed by all levels of governement as well as dramatically increased salaries, life expectancy continues to improve, and growth in the US is slowing and maturing it is not sustainable. Simple economics tells you that fewer people (private sector) can not support more people (public sector) indefinitely. It just can’t. If I was a public employee I would be very diligent in keeping my eye on what is already happening around the country with towns, cities, and even counties declaring bankruptcy and eliminating all previously given retirement benefits. The courts have ruled that it can be done and it has been done and will continue to be done as the benefits burden simply overwhelms town, city, county, and state budgets.
Life expectancy is now +80 years, not 65 years or less. That means a private sector employee who retires at 65 has an average retirement of 15+ years. For a public safety official retiring at 52, or a teacher retiring at 61, they collect benefits for many more years than that (20-30 years) now despite the fact that they haven’t contributed as much as they end up taking out of the system. The benefits are either too generous, or should start after 65 years so as not to incent these workers or their municipal employers to just put in extra time on the job to get their full pension.
The model is no longer practical. Can we convert them to 401k? Give them what should have been paid in to a retirement plan and let them manage it. They are the ones who should be responsible for making the money last till they are 90.
One local resident might have 45 years or pension based on 22 years of service.
