Public Pension Facts

[SHRED]

And remember that a large portion of the public workforce has given up Social Security for these pensions.
Also, for every dollar a public retiree receives from their retirement that dollars turns over at least twice in the overall economy...quickly.
So many times the discussion is framed as if this public pension money goes away forever.


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"The question journalists should be asking is "who contributes" to the state of Wisconsin' s pension and health care plans.

The fact is that all of the money going into these plans belongs to the workers because it is part of the compensation of the state workers. The fact is that the state workers negotiate their total compensation, which they then divvy up between cash wages, paid vacations, health insurance and, yes, pensions. Since the Wisconsin government workers collectively bargained for their compensation, all of the compensation they have bargained for is part of their pay and thus only the workers contribute to the pension plan. This is an indisputable fact. "


http://www.tax.com/taxcom/taxblog.nsf/Permalink/UBEN-8EDJYS?OpenDocument


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"Gov. Scott Walker says he wants state workers covered by collective bargaining agreements to “contribute more” to their pension and health insurance plans. Accepting Gov. Walker’ s assertions as fact, and failing to check, creates the impression that somehow the workers are getting something extra, a gift from taxpayers. They are not. Out of every dollar that funds Wisconsin’ s pension and health insurance plans for state workers, 100 cents comes from the state workers.

How can this be possible?

Simple. The pension plan is the direct result of deferred compensation- money that employees would have been paid as cash salary but choose, instead, to have placed in the state operated pension fund where the money can be professionally invested (at a lower cost of management) for the future."

http://blogs.forbes.com/rickungar/2011/02/25/the-wisconsin-lie-exposed-taxpayers-actually-contribute-nothing-to-public-employee-pensions/


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[ProgressiveProfessor]

1. The real question is if they are actuarially sound and if not how should they be fixed

The answer to the first question is no, they are not actuarially sound. The answer to the second question is what all the fighting is about.

We can not use the answer from the pension fund managers on this. Some of the whoppers told by the one in California are amazing. Independent analysis is needed.

[tularetom]

2. "contribute more" means "they're gonna get less"

Because as the article points out, pension money is part of the compensation package paid to public workers. They're already contributing 100% of the costs, they can't contribute anymore unless (1) they get a raise which seems unlikely or (2) an increased pension contribution decreases their current let pay.

To paraphrase baby bush, the pie can't grow any higher.

[elocs]

3. I will have a Teamsters' pension when I turn 65 for which I paid in nothing.

It was a result of collective bargaining with the employer and was a deferred part of my compensation.