It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees | TigerDroppings.com

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NC_Tigah
LSU Fan
Member since Sep 2003
54267 posts

It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees



quote:

U.S.News & World Report
$5 Trillion Price Tag for Public Pensions
By Philip Moeller
Nov 8, 2012


As strapped state and local governments scramble for ways to balance their budgets, it's become very clear that it will be impossible for many to honor their pension promises to new employees and even current retirees. According to a recent economic study, the cost to fully fund these promises would cost taxpayers $5 trillion over a 30-year period, or nearly $1,400 a year in higher state and local taxes and fees for every household in the country.

Put another way, contributions to pay for public employees' retirement benefits now total 5.7 percent a year of all state and local taxes, fees, and other government charges. "Government contributions to state and local pension systems must rise to 14.1 percent" to produce fully funded pension systems, the study said, and it will take 30 years to get there.

....

They also studied other possible outcomes, including different combinations of the kinds of pension cutbacks that are already being tried in some states. The results were not encouraging for taxpayers. For example, in what they say has come to be known as a "soft freeze," some states are moving new employees out of guaranteed, defined-benefit pensions and into defined-contribution plans similar to private-sector 401(k) accounts. If all new state and local government employees were forced to use such defined-contribution plans, the study found, average household taxes would still rise by more than $1,200 a year.

Adopting a much harsher "hard freeze" policy would stop all future benefit increases. No benefits would be revoked, but they would not grow over time to reflect an employee's rising salary or added years of service. Having frozen future pension liabilities, their study assumes states and localities would add a new defined-contribution plan and would need to make employer contributions into that plan. This approach would reduce annual taxpayer increases to $800--a figure still above what many taxpayers would tolerate.

The alternative strategy, of course, is to reduce the retirement promises made to public employees. And that is what most people expect will happen to state and local government pensions.

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XKEnut
LSU Fan
Member since Jan 2010
1144 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


That's just too f-ing bad.. I feel their pain.





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SmackoverHawg
Arkansas Fan
Member since Oct 2011
14522 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


I have to my own pension and their's. I'm not guaranteed shite except what I provide for myself, so F$%K'em!! Hate it for them but when the money is gone, it's gone.





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lsuroadie
LSU Fan
South LA
Member since Oct 2007
5891 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


They just need more money....

C'mon just a little more taxes will solve our problem






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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9961 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


Just another example of unions in cahoots with Democrat politicians. During the faux "negotiations," no one was representing the taxpayers' interests. THIS is what the whole Wisconsin bullsh!t was all about.


This post was edited on 11/16 at 5:58 am


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LSUgusto
Member since May 2005
16470 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


That's why your 401k is becoming... not fair.





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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
11729 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


Government guarantees, guarantee nothing.

This post was edited on 11/16 at 6:32 am



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XKEnut
LSU Fan
Member since Jan 2010
1144 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


quote:

Just another example of unions in cahoots with Democrat politicians. During the faux "negotiations," no one was representing the taxpayers' interests. THIS is what the whole Wisconsin bullsh!t was all about.




Nope, just buying votes and muscle.






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Newbomb Turk
Navy Fan
perfectanschlagen
Member since May 2008
9961 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


When these municipalities start going bankrupt, all of these municipal union pensioners are going to cry like little b!tches and argue that their pensions should be guaranteed and citizens should be taxed at whatever level they need to be taxed to pay these pension.

However, they should be cut off. When they made these sweetheart deals, they should of known that it was "too good to be true." They should be treated just like Enron employees -- you got in bed with the wrong employer.



This post was edited on 11/16 at 6:59 am


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ShoeBang
New Orleans Pelicans Fan
Member since May 2012
4621 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


If they decide to fire all the useless state and municipal employees first, I'll agree to the tax.

Community organizers?
Assistant Office Administrators? Lol the secretary has a secretary. I've heard about that kind of shite.






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Topisawtiger
LSU Fan
Mississippi
Member since Oct 2012
885 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


Man this board is full of a bunch of cold, heartless bastids!

Me like. :-)






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Tigah in the ATL
LSU Fan
Atlanta
Member since Feb 2005
25237 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


quote:

It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees
it sucks for the retirees, but no one should expect their pension to actually show up.






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wryder1
LSU Fan
Birmingham
Member since Feb 2008
1935 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


Tiger is ATL,
Nobody should expect their pension to show up but some worthless piece of shite should expect his entitlement to show. Why are those that worked and earned their stuff have to sacrifice while the lazy and worthless get welfare, housing, transportation, a free phone, free groceries and now free healthcare.
They should be the ones "not expecting anything".






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dinosaur
LSU Fan
Louisiana
Member since Aug 2007
623 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


I totally agree. Why is it so hard to consider cutting back on people who did nothing to earn their check while talking about crushing someone who worked their whole life and now,when they simply can't go back to work, can be screwed.

But like a lot of political statements, there are exceptions. Government employees who set their own pay and pensions (as in some of the California municipal situations) should be cut off. What they did was near to criminal. But some poor old lady who taught school for 40 years should not lose her pension unless there is absolutely no other choice. Of course, a lot of this becomes moral choices and we haven't had a real good track record of good moral choices in this country in the last couple of decades.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
84437 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


I've never been given a reasonable answer why public employees need separate pension plans apart from Social Security.

Those plans should be frozen and every public employee put into Social Security just like the rest of us.






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prplhze2000
LSU Fan
Parts Unknown
Member since Jan 2007
31964 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


Mississippi's plan is only 58% funded. The retirees get an automatic 3% raise every year and THAT raise is compounded for each retiree after three years. The deficit between contributions from employer/employees and benefit payments is $600 million.

Yet they shriek if you mention doing anything.






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Politiceaux
LSU Fan
Member since Feb 2009
15632 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


The real battle in states going forward is unions vs. fiscal reality. Most other issues are just noise.





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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
300877 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


can't wait to pay for this

#frickedGeneration






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KeyserSoze999
LSU Fan
Member since Dec 2009
4138 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


definately not fair that some "rich" people should have 401k's while others are left holding their own ass. Since somone made a promise, the only solution is to let Obama hold everyone's retirement and distribute it according to the code of what is fair. We can't discriminate.





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CP3LSU25
LSU Fan
Lafayette
Member since Feb 2009
36054 posts

re: It's Become Clear States Will Not Be Able to Honor Pension Promises to Retirees


quote:

Tigah in the ATL


You are a leech.






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