Pension funds not keeping up

Are you referring to PERA when you say renege on benefits?

If so, and the State reneges on them, what happens to the folks who in good faith paid into PERA and are, therefore, ineligible for Social Security? Just up the creek?

There are laws on the books about what would happen next Gramma. The laws which govern how an insufficient private pension fund is dispersed are probably very similar in nature, if not identical, to the laws that would govern how a public pension fund is dispersed when it is no longer capable of providing the promised benefits. I'm certain that those who paid in the longest would get the lion's share of the remaining funds, though there is no doubt that their pension wouldn't be anywhere near 80% (or more) of the average of their highest 3 years of earnings plus an annual COLA increase any longer.

I understand that, but then are the members of that empty pension fund up the creek for their retirement? Or is there any sort of provision for them to be able to apply for Social Security? The members aren't normally eligible for SS due to contributing to PERA in lieu of SS.

Depends - my wife works for Jeffco Schools now, but she worked in the private sector before that, earning some measure of access to Social Security and she would be eligible to receive any survivor benefits from Social Security and Medicare that I qualified for given that I have always worked in the private sector.

Mtn Gramma wrote: Are you referring to PERA when you say renege on benefits?

If so, and the State reneges on them, what happens to the folks who in good faith paid into PERA and are, therefore, ineligible for Social Security? Just up the creek?

Gramma, I think they made some recent changes to PERA to strengthen the funds, mostly for new and current employees, they pay more in. A friend has both PERA and SS eligibility - I think you get a reduction in SS based on how much you get from PERA.

And don't worry, we're all up the creek. We just don't know it yet.

Joe wrote: And don't worry, we're all up the creek. We just don't know it yet.

So you know it and I know it but how do you get others to see the writing on the wall?