Government Pensions, A Disaster In The Making

Posted by Jason | Posted in Government | Posted on 20-04-2010

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From my local paper comes even more proof of government’s complete incompetence. Why anyone trusts government is beyond me.

Pennsylvania hasn’t paid the annual recommended amount to its school and state employee pension funds in years, and won’t for at least another decade if lawmakers adopt a budget proposal designed to spread costs into the future.

The state is not alone with that tactic.

As 2009 pension reports trickle in, it appears cities, states and schools across the country are cutting back on pension fund contributions in order to shift money to budget needs. Of 71 funds that reported 2009 contributions in the Boston College report, about 40 percent of them met their recommended contributions.

The annual recommended contribution is the yearly amount required to cover administrative costs, the cost of benefits employees earned in a given year and the cost of paying off any unfunded liabilities. Typically, employees and employers — in this case the state, city or school district — each pay a portion of the tab.

“It was easy to cover this stuff up. Nobody is going to look at something like this in good times because it is so easy to cover it up. … That’s why (governments) went ahead and increased benefits, saying the stock market would cover it and it wouldn’t cost anything. I knew a day of reckoning was coming,” Dean said.

Easy to cover up? Are people catching on that government is a fraud? If the private sector did this, they’d be hauled before congress and used as a public sacrifice to the Capitalism Is Evil gods.

Although many states and municipalities adjusted benefits for new employees, courts have ruled they must meet their obligations to retirees and active employees.

“Now when someone asks about pension problems, I tell people you better check city hall, because they may be selling your child’s soccer field to pay for pensions,” Dean said.

Pennsylvania increased benefits for state and school employees and lawmakers in 2001, added a cost-of-living raise for retirees in 2002, and then reduced contributions to the funds and spread costs out over a decade to soften the blow of market declines.

Don’t worry. I’m sure the intelligentsia can figure this out.

Munnell said researchers could offer no easy solutions.

“We don’t have anything brilliant to say. There is little in the way of public options to fix this quickly,” she said.

Uh oh!

via Triblive.com

While the rest of us are cutting back, struggling just to get by, and many of us haven’t been able to afford contributing to our retirements, the government just keeps spending. They keep making more and more promises to government workers, who produce absolutely nothing. Of course, guess who has to backup those promises? It’s not the slimy politician or bureaucrat. It will be us, the tax payer. We will have to work extra weeks of unpaid labor just to hand over to the government, like slaves trying to increase their masters wealth.

Why do government workers even get pensions? Who in the private sector gets pensions anymore? The private sector has moved away from the pension system because it’s  unsustainable. Of course, the morons in government don’t care about that. This is just another example of government not doing what’s best in the long term like private businesses do. This is why government should be extremely small, and private businesses should handle the services we want as consumers. The privates sector has moved toward 401k, IRAs, etc. These are self managed by employees and do not require long term commitments by employers. Not with government though. Government workers retire young with huge benefit packages. They didn’t produce anything while they are working, and now they get to sail off into a tax payer funded sunset.

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That’s the part that people keep forgetting in all of this – government produces ZERO. So to promise an income for life as a pat on the back for a job which contributes nothing to the creation of wealth and prosperity in this country is so backwards that only the government could come up with it.

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