Getting the Priorities Straight

Many of the American States are now facing deep budget deficits and therefore are pursuing efforts to curtail the supposedly overextended state pension plans. Many state and local officials are increasingly looking to reduce the retirement benefits that have long been associated with government employment.

In California, an estimated 80 cents out of every government dollar goes to employee payroll and benefits. The Govern-ator has recently proposed a two-tier system which offers new state workers reduced benefits with stricter retirement formulas. He is also asking state workers to make higher pension contributions to reduce California's staggering deficit.

Yet, in Pennsylvania it is said the governor is right to propose increasing public health care by $804 million, over the fiscal year of 2009-2010 and doubling the number of residents; now about 50,000, enrolled in an insurance program for low-income Pennsylvania workers.

Interestingly, 49.4 Billion dollars will be spent in 2010 for social welfare programs throughout California, 12.4 Billion in Pennsylvania, 11 Billion dollars in Florida and 9.9 Billion in Illinois. New York plans to spend 23 Billion dollars on social welfare programs and in all states combined a staggering 248.9 Billion dollars will be spent.

State funded Health Care Programs within these very states are also quite generously funded. In California, Health Care Benefits account for 75.1 Billion dollars in 2010. In Pennsylvania another 22.3 Billion dollars is proposed. New York has budgeted a whopping 52.5 Billion dollars; Florida plans 32.4 Billion and Illinois, 21.0 Billion dollars.

On the state’s notoriously deteriorating education systems, California is willing to spend 119.8 Billion dollars in the fiscal year of 2010, New York, 74.3 Billion. In Florida 46.1 Billion dollars will be spent on education. In Pennsylvania, 36.9 Billion dollars are budgeted and Illinois has 37.8 Billion dollars budgeted. All states combined, brings the massive total of 952.2 Billion dollars for education.

I mention these states, due to the fact that they are historically at the top of the list of American states for lavish spending on social programs. Yet, they are also the same states that are crying the loudest, because they believe they can no longer afford Retirement Benefits to the many people who have diligently worked to provide the very services the government has promised to their individual citizens. Additionally, and in most cases, these people have worked to provide these services for a majority of their lives, many have earned between 20 and 30 years of service.

Although the pension dollars are high; with California expecting, 34.3 Billion dollars in pension payments due for 2010, and New York having 25.5 Billion dollars due, Illinois, having 12.2 Billion dollars due, Pennsylvania, with 10.6 Billion and Florida having 8.3 Billion dollars expected to go out to pension benefits, all states total 211.6 Billion dollars for 2010. This amount is certainly less than the costs of social services, education and Health Care as well. Health Care totals 576.2 Billion dollars for all of the states combined.

Why cut pension benefits? Why not look within the numerous individual services provided by the states and curtail spending there, first? I believe this effort is purely a means to create divisiveness between the younger and older workers and to gain support from the younger worker to allow the states to default on retirement benefits, in favor of a seemingly more secure and brighter future for the youngest generation of workers.

:Koolaid: :Koolaid: :Koolaid:

Perhaps one question to ask is if the pensions were well conceived to start with. When a company creates a pension that cannot be supported, then either the company fails or reduces the pension. Why should the governed support pensions that may have been based on dreams rather than reality?

Yeah, good idea. Cut everyone's pension and throw millions more on the job market. That'll fix the problem right up.

All I know is the government pension I'm on hasn't given a COLA in over 3 years. So where the waste is, I cannot say. However, social welfare programs keep increasing at a rate much higher than the simple pension plans that are so common among retired Gov't. workers.

Not only will this put all of the retirees back into the workplace, where no jobs exist still, but it will put people from the age of 55 to 85 into the job market. Do ya think anyone will hire them? They'll end up on other social welfare programs, still on the Gov't. dole.

There's no simple solution to this one! Sorry.

Why does one type of worker deserve a lifetime pension when another type of worker, who worked just as long and just as hard, does not have one or had it taken away from them due to lack of $$$. Many people/voters are asking this question.

daisypusher wrote: Perhaps one question to ask is if the pensions were well conceived to start with. When a company creates a pension that cannot be supported, then either the company fails or reduces the pension. Why should the governed support pensions that may have been based on dreams rather than reality?

401K's are transportable. If a company goes away, a person can take their 401K with them. Some companys match funds, but not all. A part of my salary went into my retirement plan, monthly. I paid into my pension plan and not into Social Security, therefore am not eligible for SS benefits; which is only fair. All I have is my pension, with no medical benefits and no guaranteed annual increase in benefits. Increases are based on the Cost of Living (COL), which must increase by no less than 3%, for an increase to be considered. However, if pension plan management costs cut into the 3% volume of increase in the COL, no increase will be given. There's lots of little details and this is a common form of gov't. retirement plan.

Again, people need to look into the removal of gov't. wasteful spending, earmarks and many of the entitlements granted to Americans and non-Americans, before attacking the benefits of retirees.

So then you do not have a pension, but a 401K. We are taking apples and oranges here.

No, I'm only speaking of 401K's since you mentioned private sector retirements, most of which I conclude are 401K's. I actually have a pension which is a Statewide defined plan. Besides, there is little difference when you consider my work-years pension payments are invested in the market quite similarly to a 401K.

Don't think I am changing the subject and please don't miss the point, I believe there are tremendous cost cutting measures which must be taken within the numerous entitilement programs that exist within all cities, states and the Federl Government. All which can be made waaaay before looking at pensions. They are looking for the simplest way out and are hoping to gain support from the youngest generation of workers, who haven't even begun to think of retirement.

As I served the public for over 20 years, I paid in and I can now collect. That's what pensions are for. That's also one reason why I chose the profession, I did.

Furthermore, why do you dismiss that Gov't. emloyees are exempt from Social Security? I never even paid in to Medicare! Do you realize what that means?

Currently, Health Insurance costs me and my wife, nearly $12,000.00 a year and the first $10,000.00 in payments, when needed, are an out of pocket expense/deductable.

My retirement benefits will never cover this cost, after my wife retires. Again, I ask, Why cut pensions? There are many other areas that must be trimmed, and/or cut completely before one looks at a person's retirement income.

Part of the issue is that when times got tight, the state would underfund the pension plan that year. New Jersey was notorious for this.
I think they need to declare that there will be no COLA increases for the next 10 years so pensioners can plan for the decreased real income and warn state employees that there will be a 1% increase on their pension liability for the next 5 years.

And for the state employees whining, be glad this isn't Hungary or Argentina where people's retirement savings have been seized by the goverment to fund goverment debt.