Public sector pension war heating up (fast food, military, dollar, Illinois)
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And for the record, yes most public service employees put money towards their pension and pay for healthcare. My wife contributes (I think) 9.5% or her salary.
And for the record, yes most public service employees put money towards their pension and pay for healthcare. My wife contributes (I think) 9.5% or her salary.
Then why do taxpayers have to subsidize their pensions?
Pensions are the old way of doing this... it fell apart when people actually started making TOO much money... pensions are NOT meant for high earners (anything over 40k)... they should of been moved to private retirement plans like 401ks, etc.... and the workers should be mandated to work longer before getting pensions (30+ years of service or age 65, whichever comes first - albeit it should reject "new" workers who are older so they can't game the system) considering its almost "guaranteed" income versus a private plan which can go up or down...
Then why do taxpayers have to subsidize their pensions?
For the same reason that private employers pay (or paid) into an employee pension plan, it's considered a fringe benefit. I worked for a company many years ago where the pension was entirely employer funded, not one dime for it came from employees.
Pensions are the old way of doing this... it fell apart when people actually started making TOO much money... pensions are NOT meant for high earners (anything over 40k)... they should of been moved to private retirement plans like 401ks, etc.... and the workers should be mandated to work longer before getting pensions (30+ years of service or age 65, whichever comes first - albeit it should reject "new" workers who are older so they can't game the system) considering its almost "guaranteed" income versus a private plan which can go up or down...
So, only a person whose family qualifies for food stamps and free and reduced school lunch should get a pension?
What pensions, other than law enforcement or fire fighter can one collect with less than 30 years?
For the same reason that private employers pay (or paid) into an employee pension plan, it's considered a fringe benefit. I worked for a company many years ago where the pension was entirely employer funded, not one dime for it came from employees.
I don't know any private sector employers that have defined benefit pension plans like public sector workers do. Well, except for union employees.
Taxpayers have to make up the difference when those defined benefit plans fall short. That's too much of a burden on people who are stretched thin as it is.
I don't know any private sector employers that have defined benefit pension plans like public sector workers do. Well, except for union employees.
Taxpayers have to make up the difference when those defined benefit plans fall short. That's too much of a burden on people who are stretched thin as it is.
there are companies out there still that offer good bennies
my brothers company offers 401k AND profit sharing,,and the company pay 75% of the health ins premium....its a PRIVATE company...no unions (you talk union, you get fired)
I don't know any private sector employers that have defined benefit pension plans like public sector workers do. Well, except for union employees.
It's less and less common but many do. Chevron, Lockheed Martin, Phillip Morris, Schering-Plough, etc.
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Taxpayers have to make up the difference when those defined benefit plans fall short. That's too much of a burden on people who are stretched thin as it is.
I believe pensions can work, they just need to be grounded in fiscal reality by:
1. Eliminating formulas that are very common like my wife's employer where people can retire in their 50s.
2. Use a wide timeframe to determine benefits to prevent final year or years boosting thru overtime and additional duties to manipulate pension amount.
3. Put an inflation adjusted cap, just like social security. No more weird stories of people on pensions somehow pulling in 150k in retirement, you're getting x amount per month max.
When the economy is booming the private sector workers are paid way more then public employees for the same jobs. When the boom bursts the private sector employes are laid off and the public sector keeps working. That is a fair trade of wages for secutrity. There are a lot of people that do not like competitive workplaces or trust the private sector to keep its word about employment security. Even fewer want to risk their familiy's income on a start up business.
In any case the managers are paid way too much in either sector. CEO's making millions for bankrupting their companies are a fine example.
Exactly. You didn't hear them saying anything when they were on top, but now they're not and demanding everyone come down to their level.
The pension plans that are being bitched about were set up 30, 40 and 50 years ago when defined benefit plans were all there were. 401Ks, what are those? They didn't exist then. Where I live set up a pension for Town employees about 20 years ago through the MD State Retirement System, the only plan available was defined benefit. Now 401K types are available and that's how most governments are are going now for new hires.
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