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Old 12-28-2010, 07:20 AM
 
Location: San Diego California
6,797 posts, read 6,585,847 times
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http://www.nytimes.com/2010/12/23/bu...hard.html?_r=1

Many people feel that government pensions are untouchable; this article shows that they are not. Despite what the law is, the reality is, when the money runs out, the checks stop coming.
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Old 12-28-2010, 07:49 AM
 
8,265 posts, read 11,126,865 times
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Good thread. Many of these pension funds just aren't grounded in economic reality.

From article: " Maryland is considering a proposal to raise the retirement age to 62 for all public workers with fewer than five years of service."

Say what? Retirement age should already be at least 62 for public workers, and people with fewer than five years of service shouldn't have any type of government pension, period. My wife works for city government and can retire with 80 points, that is age + service. So most people there can retire in their early 50s with a full COLAd pension, despite being perfectly capable of continuing to work and probably at a point when their experience makes them one of the more valuable workers.

It is nuts.
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Old 12-28-2010, 10:24 AM
 
Location: Backwoods of Maine
7,295 posts, read 8,846,589 times
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Problem is, gov't pensions were big buyers of MBS's, CDO's, and other mortgage or debt-backed instruments that are just derivatives, and are going bad now. As the mortgage crisis worsens, so too will gov't pensions. The harder the unions push for better benefits, the higher the risk these funds will have to take to pay for it all. Talk about shooting yourself in the foot!
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Old 12-28-2010, 02:18 PM
 
28,271 posts, read 30,833,560 times
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Quote:
Originally Posted by jimhcom View Post
http://www.nytimes.com/2010/12/23/bu...hard.html?_r=1

Many people feel that government pensions are untouchable; this article shows that they are not. Despite what the law is, the reality is, when the money runs out, the checks stop coming.
It's true. I work in the public sector and wonder if I'll see any pension at all in 15 years. Same thing goes for Social Security.

Too much has been promised and there is a whole lot of denial out there at all levels.
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Old 12-30-2010, 10:26 PM
 
Location: Yucaipa, California
9,842 posts, read 19,469,252 times
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The govt (city, county, state & federal) will not cut the public employees pensions, salaries or benefits any time soon. New hires is a totally different story.

If taxes are raised or services have to be cut then they will do it.

Govt employees will protect themselves cause its a dog eat dog world.
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Old 12-31-2010, 08:07 AM
 
8,265 posts, read 11,126,865 times
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Quote:
Originally Posted by steel7 View Post
The govt (city, county, state & federal) will not cut the public employees pensions, salaries or benefits any time soon.
Umm.... the article jimhcom posted references a city that stopped (cut) paying pension benefits to retirees due to financial strain.

It is certainly both an outlier both in size of the pension fund and in the decisions they made but it certainly counters any claim that a city government will not cut public employees pensions.
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Old 12-31-2010, 08:44 AM
 
48,508 posts, read 87,658,767 times
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Sounds lie that town had its own pension fund which is pretty rare really.But then anyhting can happen to pension including SS and private really.
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Old 12-31-2010, 09:10 AM
 
Location: Denver
1,788 posts, read 2,118,966 times
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Mandatory retirement at 56 would be a wild dream for anyone. Unless they work for certain areas of the government.
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Old 12-31-2010, 01:59 PM
 
5,353 posts, read 10,240,533 times
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All it takes is endless, boundless, dynamic growth, under the can-do leadership skills of America's MBAs from our finest World Class Business schools . . .

hmmm . . . . we are soooo screwed.

Pensions failures are just another symptom.
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Old 12-31-2010, 02:09 PM
 
Location: Great State of Texas
86,068 posts, read 76,108,114 times
Reputation: 27635
Quote:
Originally Posted by steel7 View Post
The govt (city, county, state & federal) will not cut the public employees pensions, salaries or benefits any time soon. New hires is a totally different story.

If taxes are raised or services have to be cut then they will do it.

Govt employees will protect themselves cause its a dog eat dog world.
Unless of course they default or declare bankruptcy..this is for city and state governments. The Fed is another story.
The CBO just put out a doc explaining options cities and states have for either defaulting or declaring bankruptcy.

Yeah..it does some ominous that the CBO is coming out with this..isn't it ?

CBO Has Started Weighing The Benefits Of Bankruptcy Or Default For Local Governments

"Fiscal stress faced by local governments"
Congressional Budget Office - Fiscal Stress Faced by Local Governments
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