State Pensions Maybe of Interest to DOT employees here

[3467]

http://capitolfax.com/2013/01/04/quinn-madigan-agrees-to-drop-cost-shift/

Illinois is trying to cut pension benefits. The Illinois constiution declares it a contract with no diminishment of benefits. I think only AZ and NY are as strict. In some states its more like Soc Security which can be cut to some degree

[Brandon]

^^ Illinois has some major pension issues, some of which stem from double-dipping and making the pension fund play Santa Claus i.e. the teacher's pension is calculated from the last four years of a teacher's employment prior to retirement.  Many would get a major pay increase and promotion at the four year marker thus getting more out of the fund than they paid into it.  About the only pension fund in Illinois that is solvent is the Illinois Municipal Retirement Fund (IMRF).  IRMF's caretakers have been very vigilant about not letting this type of bullshit go on and not letting contractors or union leaders double-dip from the fund.  IMHO, IMRF is the model the state should use to maintain the benefits while keeping the tomfoolery at an absolute minimum.

[3467]

Also state skipped payments to ...use them as a piggy bank.
There was a suit to force them to pay but the Supreme Court said they could force the payments to retirees but not put aside the money. IMRF is forced to get the cash by law written by the same clowns who exempted themselves

[hbelkins]

Kentucky's problem is that the legislature has failed to make the required contributions necessary from state funding. The pension system for existing retirees and employers is supposed to be an "inviolable contract," but that means little, as our state court system has allowed signatories to contracts to break them without penalty.

There's some discussion about changing the system for future employees from a defined benefit plan to a defined contribution plan.

[3467]

Illinois already cut benefits to new hires ....They would have been better off going to Soc sec and a small defined benefit over what they gave them. It sucks so bad the feds may force them into soc sec...but in soc sec they would have to make payments.
That is a disturbing court decision. The corproate types complaining about pensions sont seem to get that bonds are contracts -loans are -our entire system is Without contracts the economic system is kaput. We would all be like drug dealers

[mgk920]

And then the money runs out....





Mike

[Brandon]

Illinois already cut benefits to new hires ....They would have been better off going to Soc sec and a small defined benefit over what they gave them. It sucks so bad the feds may force them into soc sec...but in soc sec they would have to make payments.
That is a disturbing court decision. The corproate types complaining about pensions sont seem to get that bonds are contracts -loans are -our entire system is Without contracts the economic system is kaput. We would all be like drug dealers

Except that in Springfield, the drugs are power and money.  And the one who wrote the clauses protecting these pensions is now Speaker. 

I just wonder how long until Illinois becomes the first state to declare bankruptcy.   

[SP Cook]

Here in WV, our Supreme Court has ruled that the state cannot change pensions for current employees.  Consequently we have three, increasingly less generous pensions based on one's date of hire.  The basic original system provides that one can retire when ones age and years of service equal 80 (85 for teachers), providing one is at least 55.  The main problem is that pensions never get a COLA, so a person who retires early or lives long falls behind.  Obviously the current national situation can only be corrected with a massive inflation, probably we are looking at nearly a decade of 10 to 20 percent per year to reduce the money borrowed to give free cell phones to lifewelfarists and other such stupidity. 

If you follow these things, the current national administration is proposing that no pension system, public or private, that provides for a retirement before 62 be allowed and feels it can adopt such as an IRS rule, without congressional approval.

[vdeane]

probably we are looking at nearly a decade of 10 to 20 percent per year to reduce the money borrowed to give free cell phones to lifewelfarists and other such stupidity. 

Actually, most of the money goes to funding a military whose full capabilities will never be needed unless we received a simultaneous declaration of war from every other country on the planet.

[Alps]

Obviously the current national situation can only be corrected with a massive inflation, probably we are looking at nearly a decade of 10 to 20 percent per year to reduce the money borrowed to give free cell phones to lifewelfarists and other such stupidity.

This is unnecessary politics. Yes, this is Off-Topic, but we still ask to keep politics to roads-based discussion only.

probably we are looking at nearly a decade of 10 to 20 percent per year to reduce the money borrowed to give free cell phones to lifewelfarists and other such stupidity. 

Actually, most of the money goes to funding a military whose full capabilities will never be needed unless we received a simultaneous declaration of war from every other country on the planet.

This, too.

[hbelkins]

The discussion about retirement age is pretty much moot to me anyway. I have 14 more years to go before I can retire with full benefit (27 years of service in Kentucky), so I will be 65 when that happens (if I live that long). I'd be crazy to retire at that age before I can draw the maximum on my Social Security, which means I'll probably continue to work till I'm 70, so I'm going to be the old curmudgeon that everybody wishes would retire but won't.

And then when I retire I'll be too old to enjoy my retirement. If I had started when I got out of college, I'd have 29 years of service in. I could retire, take a part-time job of some sort to supplement my pension, and would still be young and fit enough to travel or do whatever I wanted to.

[pctech]

Here, (Louisiana) the state retirement systems faces around an $18 billion dollar unfunded liability in the coming decade or so. Current governor tried to "savage" the system, raising retirement ages, cutting benefits/years of service calculations,etc. It got no traction from the legislature, would have likely shot down by the courts. It's constitutional protected  and is suppose to be kept financially sound. Previous governors and legislatures ignored the funding law . In my opinion they should all be charged with failing to uphold their duties and breaking a contract.
New state employees will get a new "valued added" defined contribution retirement system. (assuming it survives court challenge) however

[mgk920]

Right now Wisconsin is the only state with a fully-funded government employee pension system.  In some states, the situation is so bad that it is severely eating into the quality of services, despite major increases in tax rates.  As the city attorney in San Bernardino, CA said a few weeks ago when his city's police department had to lay off a large number of cops to cover part the city's deficit, a large portion of which is unfunded pension liabilities - "Lock your doors and load your guns".



Mike