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Old 04-11-2016, 04:21 PM
 
Location: Florida and New England
1,233 posts, read 1,417,753 times
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Quote:
Originally Posted by DaveinMtAiry View Post
Living near DC I know a lot about government workers and it's common knowledge that government jobs pay less than private sector, a lot less depending on the field. They trade in a lower paycheck for benefits down the road. Nothing wrong with that at all. I get tired of people bashing our government workers.
They _used_ to pay less than the private sector. Factoring in pensions and health benefits and the stagnation of private sector wages, they now pay substantially more than the private sector (1.5x is the factor I have heard). This inversion happened in the 1990s.

I don't begrudge government retirees their due, and I have several in my family. My brother who started working for the DoD right after grad school in 1987 hit the sweet spot and would be able to retire at 55 in a couple of years.

However, government retirees (federal, state, local) should be aware that the taxpayer/ voter sentiment toward public pension retirees has been shifting negatively, and I think it would be wise for them to continue saving and to avoid unnecessary expenses just in case there are downward adjustments to pensions in future budgets. Detroit went through this, and it looks like Illinois will soon also.
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Old 04-11-2016, 04:38 PM
 
2,294 posts, read 1,561,151 times
Reputation: 2737
Quote:
Originally Posted by teacherdad View Post
This is getting away from the OP, so I'll hold my tongue. However, you do not have even close to the facts of actual teaching (elementary school). You have knowledge based on your history or incorrect news reports. You can't generalize "teachers" as one group that works 180 days per year. Classic!
I am very familiar with the teacher schedule as I did it for a time. Teachers can also advance to manly other positions, etc. I"m not saying it's not valuable work. It is. The rest I say holds.
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Old 04-11-2016, 04:45 PM
 
2,294 posts, read 1,561,151 times
Reputation: 2737
Quote:
Originally Posted by westender View Post
They _used_ to pay less than the private sector. Factoring in pensions and health benefits and the stagnation of private sector wages, they now pay substantially more than the private sector (1.5x is the factor I have heard). This inversion happened in the 1990s.

I don't begrudge government retirees their due, and I have several in my family. My brother who started working for the DoD right after grad school in 1987 hit the sweet spot and would be able to retire at 55 in a couple of years.

However, government retirees (federal, state, local) should be aware that the taxpayer/ voter sentiment toward public pension retirees has been shifting negatively, and I think it would be wise for them to continue saving and to avoid unnecessary expenses just in case there are downward adjustments to pensions in future budgets. Detroit went through this, and it looks like Illinois will soon also.
You are right on. And I retired from "government work" having managed a fairly large defined benefit plan and all the intricacies that went with it.
I expect it will be difficult to reduce existing payouts generally, but formulae for new employees have already been ratcheted downward in many agencies and funding levels are dangerously low.

It also was virtually impossible to fire any of our employees. They were very well paid. Actually, more than the private sector equiv in most instances because of the power of the labor unions in CA. And we have great retirement pensions

I"m not giving any of mine back, but I get tired of the whining by the public sector folks, teachers included. I know I have it good. I'd have to have about 2.5 million in a deferred comp account to equal my pension and then I"d still have to manage it and worry about if I had enough. I also will get social security later this year and I also saved in three separate deferred comp accounts (401k, 457, and 401a) plus a Roth.

I'm not bellyaching and my job wasn't the easiest either dealing with employees and the Retirement Board, etc.

Teaching is important, but let's get realistic here.
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Old 04-11-2016, 05:21 PM
 
8,197 posts, read 11,913,206 times
Reputation: 17979
Quote:
Originally Posted by runswithscissors View Post
No one ever budgets a thing for Assisted Living or Memory Care. Or ANY LTC for that matter. I guess you're all betting on an early death. NOT an illness just a death, right?
No one?

Quote:
Originally Posted by runswithscissors View Post
Do you realize a pair of progressive glasses cost around $700? That's another $20K if you live to 85. But if you go to Walmart you can get them for half that.
Why would someone need a new pair of $700 glasses every year for 30 years?
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Old 04-11-2016, 05:25 PM
 
8,197 posts, read 11,913,206 times
Reputation: 17979
Quote:
Originally Posted by bjimmy24 View Post
stopped thinking after this. It's a lot easier when your way of making money is just taking it from everyone else at an unjustifiably higher rate than the plebs can attain without state extortion.
fyp
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Old 04-11-2016, 07:26 PM
 
12,299 posts, read 15,196,725 times
Reputation: 8108
Quote:
Originally Posted by DaveinMtAiry View Post
Wait what? Living near DC I know a lot about government workers and it's common knowledge that government jobs pay less than private sector, a lot less depending on the field. They trade in a lower paycheck for benefits down the road. Nothing wrong with that at all. I get tired of people bashing our government workers.
Since government jobs offer maximum security, I would expect at least a 15% drop. Since the Fed is a big employer of choice, another 5-10%. It would be fair for Federal employees to be paid 20% less than those doing the same work in the private sector.

However, not necessarily at the State level. Some States are planning massive layoffs.

Last edited by pvande55; 04-11-2016 at 07:29 PM.. Reason: Add line
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Old 04-11-2016, 07:27 PM
 
1,569 posts, read 2,749,560 times
Reputation: 1558
Quote:
Originally Posted by teacherdad View Post
I have a safe full of tools to address issues with health should they become cost prohibitive

Eskimo deal for me! Put me on a floating piece of ice and adios! Never sitting in a bed 24/7. I've been "hyper" my entire life according to my report cards and now students.

Health coverage is my only concern. I have to look into that. I pay about $400 per month and my employee puts in $1100. That said, Where I live there is ONE health network so no competition. CLE has the Clinic and many hospitals (best cardio in the World).
The Bernie Madoff retirement plan could work. Not how he invests -- but how his medical care and three hots and a cot are paid for NOW.
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Old 04-11-2016, 07:44 PM
 
2,980 posts, read 2,705,274 times
Reputation: 5631
Quote:
Originally Posted by gunslinger256 View Post
sounds good.

What will happen to CA when everyone else decides to move to the south?

CA will be repopulated by Central and South American immigrants from across the southern border.
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Old 04-11-2016, 08:37 PM
 
Location: Los Angeles area
14,018 posts, read 17,737,509 times
Reputation: 32304
Quote:
Originally Posted by westender View Post
..................................

However, government retirees (federal, state, local) should be aware that the taxpayer/ voter sentiment toward public pension retirees has been shifting negatively, and I think it would be wise for them to continue saving and to avoid unnecessary expenses just in case there are downward adjustments to pensions in future budgets. Detroit went through this, and it looks like Illinois will soon also.
Unlike cities and counties, states cannot declare bankruptcy. I know Illinois is in bad shape in terms of the funding of its pensions, but it will play out in a different fashion than Detroit, where things were settled in banruptcy court.

I don't know the legal status of state pensions in Illinois, but in California the courts have held that state pensions are a contractual obligation and as such cannot be reduced or modified by the legislature. What the legislature can do, however, is modify the pensions for hew hires, which was done recently with the state teachers' pension. The reductions were not particularly draconian, but they were reductions.
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Old 04-11-2016, 09:15 PM
 
Location: Haiku
4,078 posts, read 2,574,551 times
Reputation: 6005
Quote:
Originally Posted by West Coasting View Post
In my field, to many past co-workers have passed on due to things like tumors, cancer, and other things at an early age while still working. Then the ones who do stick around until 62 or beyond, die one year or so after retirement.
So this brings up an interesting question: What is the difference between someone who dies at 60 while slaving away at a desk job every day vs. someone who dies at 80 after spending 20 years traveling, etc?

I would say there is no difference; they are both dead. And it is not like you can those memories of traveling (or slaving away) with you when you die. You are dead and your life's accomplishments are meaningless at that point.

My point here is that life decisions centered on whether your last years are optimized for most pleasure are not all that meaningful. Really, all that matters is the present, not the future. If you love your job, then keep it and don't worry about what you might miss by retiring early. And vice-versa.
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