Get ready for the looming crisis regarding municipal pensions. In the next six to twelve months, you’ll be hearing and reading a lot about how government employees’ pensions are “guaranteed.”
The municipal employees unions, including the SEIU, will argue forcefully that their members’ pensions are guaranteed and cannnot be changed. Where in the private sector can one retire in his 50′s with a guaranteed pension ranging between 75-150% of his salary? Firemen in California and professors in Washington receive pensions totalling more than $100,000.
Even though your 401(K) has decreased in value over the past few years, you are going to be forced to pony up through more taxes to pay those “guaranteed” pensions for government employees. Not only are they paid more than are those in the private sector, their benefits are superior. The upcoming pension funding crisis is more serious than many realize.
President Obama, whom I call “Professor Kickass,” talks about fairness in the tax code; yet he has hypocritically increased the federal payroll by 14% in his first 18 months in office. Higher incomes, improved benefits and huge pensions are what taxpayers must fund courtesy of our President, who is owned by the SEIU. That’s Professor Kickass’s idea of fairness.
And, by the way, remember last year’s ballyhooed stimulus package? Well, a chunk of it, meaning your tax dollars, was allocated to help preserve some municipal employees’ jobs.
Pennsylvania is no exception. Our state’s pension fund has lost billions – similar to the losses in the average working person’s 401(K) plan. The difference? Tough luck if you’re counting on a 401K to get you through your golden years. As for the unions, they have nothing to worry about because taxpayers are responsible for shoring up their “guaranteed” pension plans.
You may want to contact some of our retired legislators like Kevin Blaum and soon to be retired state Sen. Ray Musto and ask them why their pensions are so generous. HINT - They voted themselves huge pension increases a few years ago, saddling taxpayers with the bill for decades to come. It’s ”guaranteed.”
But the really big - and I mean really big – problem will be hitting us hard very shortly - courtesy of the teachers’ union.
Unfortunately for us, we pay for our public schools and their employees through an antiquated property tax system.
Stay tuned …