Public pensions: Just reward or too much?
Which side of the pension divide are you on? Why?
Many younger teachers and other public workers will not enjoy as secure a retirement as their predecessors, AJC reporter Russell Grantham writes. Many can expect pay cuts, furloughs and growing pressure to trim public employees’ pension benefits.
On the other hand, many in the private sector believe state and local employees’ pensions and pay are out of control and need to be cut — even if state and local governments have to file bankruptcy to do it, Grantham writes.
What do you think? Should federal law be changed to allow bankruptcy as an option to shed pension obligations?
- Henry Unger, The Biz Beat
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110 comments Add your comment
TnGelding
March 30th, 2011
7:42 am
The money wil be there because money never sleeps. And contributions are coming in continuously.
khc
March 30th, 2011
9:00 am
how about dissolving the legislative branch retirement system….they are the ones that made the bad decisions….also no one in gov’s immediate staff would be eligible?
khc
March 30th, 2011
8:44 pm
brin, you don’t have a clue as to what the system now does for retirement….try reading it then get back to us….google georgia employees retirement system and teachers retirement system..
jeffg
March 30th, 2011
10:53 pm
I’m stunned by the nastiness and vitriol on this blog. Many of the posts (brin and others) keep claiming that “exorbitant” pensions are the result of some sort of scam by which politicians buy votes in exchange for big boosts in benefits, but they offer no proof. When did the pension agreements grow “out of control”? Which politicians made the deals? Is there any evidence, or is this just a talking point from the right wing echo chamber?
The fact is that public employees pay the same taxes at the same rates as anyone else. The pension benefits enjoyed by public employees have always been a part of the lower salary trade-off, and no one thought they were “out of control” until private sector employers started to squeeze their employees out of reasonable retirement plans. Pension obligations are straining the pension funds due to an economic crisis caused by the private sector finance industry–an industry that makes 41% of all corporate profits in the U.S. and provides top executives with the truly “obscene” compensation packages.
The real story here is the decades long trend of private businesses reneging on private pension promises, failing to reward workers for increased productivity, and keeping real wages stagnant since the 1970’s. Working stiffs, whether in the public or private sector, should quit sniping at each other, and instead ask themselves why corporate profits and executive pay are at an all time high while tax receipts as a percentage of GDP are at a 60 year low. The oligarchs have grabbed all the cookies, and now they have everyone else fighting for the crumbs.
JWK
March 31st, 2011
10:50 am
I think there is a good in-between. I am a teacher in SC, and I expect to be paid my retirement; however, I also don’t want the taxpayers to be overburdened or the state to go bankrupt. I think it is fair to increase the minimum years of retirement and decrease the benefit (at least for a while to see if we come out of this financial mess.) I realize that if we don’t make some concessions, our retirement may not be their at all. We also need to decrease present retirees pensions some. Also remember in a perfect situation the taxpayers don’t pay my retirement; my retirement contributions pay my retirement. Unfortunately, the retirement investments haven’t done so well lately, and the state is called upon to make the difference.
khc
March 31st, 2011
12:30 pm
good post jeffg……while dems are not saints, things have really gone down hill since W,,,,even Obama has been bought by wall st……and they could care less about main st…….anybody who works on wall st & bankers and real estate folks really need to examine their conscience….most are just overhead
No More Mad
March 31st, 2011
5:19 pm
I would like to remind folks, just as pension payments to former GA State Employees are constitutional, so are tax refunds from the State. With one swipe of the pen both could be cut off. If you don’t believe, read the constitution of the State you live in.
Michael
April 1st, 2011
9:52 am
Where are all these private sector jobs that pay triple, 20% more, or whatever than government jobs. Government workers conveniently say they could make more money elsewhere but where are those jobs. I’ve been working in the private sector for 20 years and since I don’t make six figures in my lawyer job people would just say I’m not trying hard enough.
No pension, no steady work other than what I can bring in. Give me that 9-5 government with vacation and benefits any day. Oh, that’s what the government worker is really saying. Endless work and pay until you die. There is no private sector job awaiting them.
Elizabeth Brown
April 1st, 2011
2:23 pm
I worked in public child welfare service for most of my state career. Just about everyone I know except for those who worked in the same field, asked me how I did that job. We have always been shown a lack of respect after putting our lives in danger with removing abused children and making life and death decisions while receiving low pay. Remember that we were paying into our retirement system and if we appear stupid for trusting our government, so be it. When I began working, WE HAD NO CHOICE BUT TO PAY INTO THE PENSION SYSTEM. THERE WAS NO SUCH THING AS A 401k. I think many don’t understand this. Whatever happens, I am proud of what I did to help children and families who most people don’t care about.
So You Can Be a CO
April 3rd, 2011
6:50 pm
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