The Horrific State of Pension Plans in the US
Posted 17 May 2017 - 02:53 AM
Another fine example of public unions negotiating with the people they elect to get pensions that can never be paid. Plenty of private pensions have bitten the dust as their parent companies have gone bankrupt, but at least the taxpayers are on the hook for the more unreasonable ones. This article addresses the state and municipal plans. The federal pension obligation is much worse and nothing is being done to fix it.
- mex likes this
Posted 17 May 2017 - 01:15 PM
This thread is about pensions in general... although the public sector pensions are the worst off. The NY Teamster pension went broke very recently. Many many public sector unions are going broke too, the difference being the Teamsters (at least for now) cannot dip into the pockets of the taxpayers to bail out their pension, like public sector unions consistently do.
IMO there are two issues driving this. One, people are living longer. Maybe it's time to reevaluate how and when benefits are allocated. Two, I think too many people are relying on pensions (like ss) to be their sole source of income.
Maybe it's time to start teaching people to save for their own retirements, and quit trusting a criminal system with their old-age security?
Posted 17 May 2017 - 01:57 PM
Missouri is fallin in line with this article.
I have seen many people retire in their late 50's to early 60s getting real close to what they were making while working for the state. Again this is a pension not anything they put in a 401k account. They had a rule that your pay out was based on your highest avg pay of your last 3 years served. So some pretty nice payouts are being made.
I'm not dogging anyone who has taken advantage of this. I will someday benefit from it too based on my years of service. All this time I could not wrap my head around how this could stay fiscally viable. At least with the amount of retirees and still be able to operate with the current work force.
You can see the adjustments the State of Missouri has made over the years. The biggest changes in recent years.
These changes needed to be made. Whether or not they are enough to keep the system afloat remains to be seen. I just hope it wasn't too late and I'll see the payouts I was promised.
- oldtimer likes this
Posted 17 May 2017 - 02:32 PM
The County Retirement plan is a bit less than the States. When I "retired" I was offered 3 different options to receive my "pension". Right now I'm just sitting on it as it a finite amount I can draw from in theory unless I live to be in my 90's ...no reason to wear it out if its not needed right now. Survivor only gets 50% of whats left.
When talking with the CERF ( County Employee Retirement Fund) Rep I asked how this is all sustainable..she said it s mostly Realistate investments etc. We get statements from time to time it all looks to be pretty solid.
In regards to public unions I dont have an opinion as out here in Small Town Middle America.. people that I worked with just were not "in to it" and we are/were all pretty replaceable. Better just to have a job and cost of living is cheap enough.
MIZZOU labor I believe are Union.. they are taking it up in the ass and losing their jobs right & left...what good has it done them? Pigs get fat ,Hogs get slaughtered type of thing.
- mex likes this
Posted 17 May 2017 - 08:45 PM
The obvious answer is that all pension plans should be cash based. In other words, they should have a present value such as IRAs or 401k/403 plans. The money is always there, the employer can't touch it, it goes with the worker without some artificial vesting point, and the employee has some flexibility. Aside from what the employer kicks in, there's no obligations in the future. Most private companies have gone that way and I don't hear a lot of complaints from the employees. As would be expected, the public employees are mainly on defined benefit plans that are woefully underfunded and live on future promises that are often out of reach down the road. Easy for union thugs and compliant politicians to promise big and then kick the can down the road past their terms. Should be jail time for the fraud.
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