Pensions across the economy are a looming problem. The ones we have to fund out of tax money are those public pensions. You remember, like President William Bulger's pension.
Here is a jaundiced look at California's public pensions, which are looking to be expensive in the out years.
In the back of my mind, I am figuring that given how long we are living, and the fact that the older you are, the longer the actuaries expect you to live, that our cost liability for every public employee may be twice the cost of that working employee, given that in Massachusetts retirement is running up to 80% of all pay and allowances. And if the position is for 24/7 coverage that would be 4 folks (or 5) and double that with the retirement tail.
Employees who work for us the citizens need to be treated fairly and equitably and taken care of into retirement. When Government makes a hiring decision it is a decision that could impact the taxpayers for five or six decades. "Hey, let's be careful out there."♠
Hat tip to the Instapundit.
Regards — Cliff
♠ Desk Sergeant Phil Esterhaus, Hill Street Blues.
1 comment:
The MA public pension system should be changed. The payout for the ordinary public worker is not the problem to be attacked, however. Many of those workers are paying as much as 11% of their salary into the plan, and if that were well-run it would pretty well finance the payouts eventually received.
But, often those who make the rules for themselves are able to put in ways to milk the system, and the Bulger case is a prime example. After many years of a moderate public salary (and corresponding moderate pension contributions) he was able to bump up to a much higher salary and keep it for the number of years necessary to base his pension entirely on that salary.
A major revision to the system that would have benefits acrue in a manner similar to social security would avoid these types of abuses without hurting the ordinary public worker.
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