This just adds to the debt burden and financial insecurity of our country.
Not only are wages flat, inflation rising, governments falling behind on pension contributions during one of the best financial periods ever, but workers are now having to face a retirement in poverty. Or will the government just raise taxes to 50%, to fund the Pension Benefit Guaranty Corporation?
The Pension Benefit Guaranty Corporation doesn’t do the government pensions, the PBGC bails out failed company’s pension plans.
The Government issue is one of largess. It’s like the OC firefighters negotiating full benefits and 100% pay in retirement starting at age 55. That’s the problem with government pension plans.
So I fear we have a rather nasty set of strikes coming up in the future when the unrealistic pension plans allowing retirement at 55 with 100% benefits and salary, need to get corrected.
The government promises 100% of pay at age 55? How can anybody afford to make those kinds of payments? Apparently, they were empty promises… how can these people even sleep at night. I would be one of those whistleblowers, exposing my government employer to the media and SEC. Is anyone following the San Diego pension mess? How did that ever get started? How can they make unfunded promises – isn’t that against GAAP?
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