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State pension funds running out of $$$ (Read 161 times)
Jerry Eichenberger
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State pension funds running out of $$$
10/20/10 at 06:40:26
 
There's another Yahoo story about 11 states where the pension funds are running dry.  Illinois tops the list, but some other curious ones are on there too - Kansas, Hawaii, Colorado, New Hampshire among them.

We've got to do something to stop these early retirements, or the country will go broke.  In most states, any "sit behind a desk all day" state worker can retire after 30 years of service.  Assuming that a person goes straight there from high school, that could be a retirement at age 48.  That means a pension payment for at least 30 more years, as life expectancies have increased.

Even a college graduate to go to work for a state at age 22 and retire at age 52, then suck on the state fund for another 26 years.

As baby boomers are hitting these ages, every retirement system in the country cannot withstand this onslaught of retirees drawing benefits - just too many retirees being supported by too few remaining active workers.

Investment returns for the pension funds have plummeted with the historically low interest rates and poor stock market performance.  Yes, what happens on Wall Street affects what happens on Main Street, regardless of what some ignorant politico may try to tell you.  When you take down Wall Street, you take down Main Street.

You don't have to have a PhD in math to see the coming disaster.

Retirement for all sedentary jobs needs to be raised to at least 65, and probably 68.  It's absolutely ridiculous for any healthy person to retire before 68, unless he can do so on his own dime.
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Jerry Eichenberger
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Re: State pension funds running out of $$$
Reply #1 - 10/20/10 at 06:58:31
 
Why are people willing to believe a country can engage in fiscal policy that an individual can not?

IF a man lived the way our govt lives, he'd go to jail.


Decades of debt, let me see, how would that work out for me? If I had loans out & continually mounting debts, one day, the bank will call the loans & Ill be in Bankruptcy proceedings.

WHY , what mechanism is there, how is it possible that the country NOT go broke?

& what models have we to demonstrate it will?

Can we not remember the crashed economies? Soros made tremendous fortunes, shorting the currencies of countries the Economic Hitmen set up.

Were going down. Its been set up & its gonna happen. If you have $$$ in any of these retirement accounts & can get ANY of it in lump sum,, I think you should, n
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Re: State pension funds running out of $$$
Reply #2 - 10/20/10 at 07:32:08
 
No problem for government retirees here in New Jersey, the state will just continue to take the money from us in the form of: whopping property taxes ($6000.00 annual on a $275,000.00 home), payroll taxes, tolls, sales tax, and increases in every fee you can think of like an annual motorcycle registration of $65.

Piece of story: "A record number of teachers, police officers and other public employees are retiring this year as Gov. Chris Christie's plans to overhaul pension benefits have many workers fearful of their future security.
But the rush to retirement has added new stress to the state's financially strapped pension systems.
As of Sept. 1, at least 16,400 public employees have retired this year. Those retirements will cost the state an additional $638 million in pension benefits, according to an Asbury Park Press review of state pension data." source: http://www.app.com/article/20101012/NEWS/101011028/Record-retirements-stress-...

The most popular way to retire with a huge bonus is saving those sick days. Civil servant a few towns down from me just cashed in $250,000.00 in unused sick time. Check this out: http://blog.nj.com/njv_paul_mulshine/2010/10/if_you_want_to_get_sick_read_t.html
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Jerry Eichenberger
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Re: State pension funds running out of $$$
Reply #3 - 10/20/10 at 08:22:49
 
Gov't employees have a largess that just won't continue.  Look at the violence in France.  And Britain just announced today that its state pension system has to raise the retirement age to 66.

The concept of being paid for unused sick time is silly beyond all belief.  It's there if you are sick - it's not a bonus program.  Yes, not calling in sick is nice, but frankly, in most gov't jobs, who cares if someone takes sick leave?  Nothing really suffers anyhow.

Any person who has completed the 4th grade can do the math needed to see that we have to rein in these over inflated gov't benefits to gov't employees.

I attended a candidate's night debate in our county this past Monday evening.  There is a tax levy on the ballott for one of the local school districts.  The guy who spoke opposing the levy pointed out that a teacher with 20 years of service makes $83,000 per year in salary, gets a $14,000 contribution to the state teachers' retirement system, and averages another $14,000 per year in health insurance benefits.  That's $111,000 total per year for a person who "works" 180 days a year - that's right, Ohio school years are 180 days in the classroom, less than 1/2 of the 365 days in a year.  And that doesn't even count the bonus pay a teacher can get for coaching and other "extra" duties.

That's absurd, and we're now seeing the result.  All of this was fine as long as the baby boomers were working and paying into systems that had far fewer of their parents' generation drawing the benefits.  But now that the baby boomers are retiring, the far fewer people working just can't support a luxury retirement for this huge bulge in the population curve.
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Jerry Eichenberger
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Re: State pension funds running out of $$$
Reply #4 - 10/20/10 at 08:36:18
 
When I was in school we had a music teacher who got paid $3000 a year this was in 1955 For 5 years straight that was his salary,He told the superintend he need more money so they gave him $3200 per year,Next year he moved on to bigger school and got $3600.
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Re: State pension funds running out of $$$
Reply #5 - 10/20/10 at 09:28:54
 
People don't have a gripe with teachers making a decent salary, even if they do get 3 months off every year.  But the bloated bureacracy outside of the clasroom is just excess baggage .  Pay needs to be linked to performance and failing yeachers need to be let go.

Funny how many gubmint functions can be outsourced for a lot less money.

Bureacracies can not function efficiently by design.  No competition thus no incentive to be efficient. Once hired, they are rarely fired.  

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Jerry Eichenberger
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Re: State pension funds running out of $$$
Reply #6 - 10/20/10 at 11:53:26
 
Teachers' summer vacation isn't really 3 months around here, but rather about 9 to 10 weeks.

But then, there is Christmas break of about 10 days, and at least a week for spring break.

So, total time off is about 3 months.  Then, almost never a weekend day, and usually out the door by 4 PM unless the teacher voluntarily coaches or does extra things, for which he/she gets extra pay.

How many $111K per year jobs have a schedule like that?

Some will say that papers have to be graded at night and lesson plans prepared at night.  True if you bug out of school at 4 PM, but stay there till 6 PM, or later,  like most $111K executives do, and there's little that has to be done after work.

I too have no problem with teachers making a decent income; my undergrad degree is in education.  But I do think $111K is excessive for the work hours required, the vast amounts of time off, and the education needed.  Heck, many teachers are married to teachers - how many couples have a combined income in excess of $220K, again with all of the time off and short work hours?  Darn few.
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Re: State pension funds running out of $$$
Reply #7 - 10/20/10 at 19:48:31
 
Jerry, teachers around here (Mass) do not make 111,000.  After 20 years they get all the way up to $60,000.  Their pension is on the highest 3 years..so many study to get certified as a superintendent and do that for 3-4 years at $100,000. per year, thus enlarging their retirement.  aAnd while many of you think it is outrageous to retire at 60-64 years old, most teaching jobs will drive you to drink long before that.  So, you might say, change careers and work in the private sector.  Welll, you can do that but the goevernment pension offset law will reduce you Social secuirty by $1. for every $2.00 you get from the gvt pension. Grin  Oh, if you put 20 years into the military,they will reduce your social security as aa reward. Grin
While the outsourcing of many gvt programs initially save money, they seldom do for more than a couple of years.  Only the distribution changes, the management make much more than their counterpart in gvt while the average worker makes less with fewer benefits.
ALL SICK days used should require a Dr. note and should not accumulate (but for obvious reasons, family sick should be regarded as the worker being sick..someone has to take care of little Bobbby. :'(
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Re: State pension funds running out of $$$
Reply #8 - 10/20/10 at 19:55:58
 
Ware Ma pay schedule (2007-8)
Year 1 with bachelor's $35,641 with Masters $37,801.
Year 11 with BA $51,725; with masters $53,607.
Does your average plumber or electrician with 11 years experience makes such big bucks??    Shocked
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Re: State pension funds running out of $$$
Reply #9 - 10/20/10 at 20:11:16
 
Heck, I worked with a couple of painters at Sewell Ford body shop in Odessa back in the late 70's who made over 40,000. I saw bodymen make enough $$$ to have a nice bass boat, raise a couple of kids & live in a nice home. PLumbers & electricians get Paid,, doubt me? Call someone for a quote..Ive recently passed on the plumber & spent about 4 hours changing a faucet out. Thankfully, I had help, it woulda cost me about 200 or so, if I had paid to have it done.
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Re: State pension funds running out of $$$
Reply #10 - 10/20/10 at 20:54:59
 
Jerry Eichenberger wrote on 10/20/10 at 11:53:26:
Teachers' summer vacation isn't really 3 months around here, but rather about 9 to 10 weeks.

But then, there is Christmas break of about 10 days, and at least a week for spring break.

So, total time off is about 3 months.  Then, almost never a weekend day, and usually out the door by 4 PM unless the teacher voluntarily coaches or does extra things, for which he/she gets extra pay.

How many $111K per year jobs have a schedule like that?

Some will say that papers have to be graded at night and lesson plans prepared at night.  True if you bug out of school at 4 PM, but stay there till 6 PM, or later,  like most $111K executives do, and there's little that has to be done after work.

I too have no problem with teachers making a decent income; my undergrad degree is in education.  But I do think $111K is excessive for the work hours required, the vast amounts of time off, and the education needed.  Heck, many teachers are married to teachers - how many couples have a combined income in excess of $220K, again with all of the time off and short work hours?  Darn few.

where on earth do you get those numbers ? my Wife was a teacher in a poor neigborhood, San Bernardino,she made $38,000 a year, we were thinking of moving to New Orleans but the pay there was only $28,000 per yearAt the school in San Bernardino every kid in her class
wore the same clothes every day,monday through friday, I used to go to Cosco and by huge boxes of peanut butter cookies, My wife could hand em out to the kids who kept falling asleep for the lack of food,that was all of them. The kids loved her and insisted on giving he hugs as they filed out, she would get home and run the hot water heater out of hot water while taking a half hour shower. She deserved twice what she was paid.
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Re: State pension funds running out of $$$
Reply #11 - 10/20/10 at 20:57:48
 
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The people never give up their liberties but under some delusion.- Edmund Burke.
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Re: State pension funds running out of $$$
Reply #12 - 10/20/10 at 22:31:45
 
It's very entertaining how people b!itch about how much this person makes or when they retire. Here in the United States we have a wonderful thing called freedom. What this means is you can apply for any job your qualified to perform and the employer is free to chose who they want. Different jobs have different benefits and pay, but you have a choice. If you feel working until your 112 years old is right, you can under federal law. On the other hand, if you feel retirement really can be the golden years and should be enjoyed, you can make the choice according to how you prepared. As far as pay, anybody can turn down a raise or contribute to a cause of choice. Personally I've never seen that. Cast your stones, piss and moan but you chose the road your on.
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Re: State pension funds running out of $$$
Reply #13 - 10/21/10 at 03:42:13
 
Cast your stones, piss and moan but you chose the road your on.

I'm not seein a lot of whining over the roads chosen by the people typing. Seems the real whining is about the roads others have chosen. Or am I missing it?
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Re: State pension funds running out of $$$
Reply #14 - 10/21/10 at 05:06:19
 
It isn't just government jobs. Many large corporations, and large unions, also promised pension benefits to their workers. It was easy to promise money in the future instead of paying workers in the present. I think the current phrase is "kicking the can down the road." Then, as pension funds built up, it was easy to "borrow" money from them and put promissory notes in the fund instead. But just like Social Security, when the promissory notes start coming due there is no money to pay them back.
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