From the rest of the entries in this thread I get the feeling you are blowing off your to-do-list. Tsk, tsk.
heh-heh, yep, I just had to try to get in a quick reply as they were coming in. Now I'm gonna need a gear puller, no time to get one today before I'm going out again, so that to-do list is getting pushed back to next week. I'll survive though
RE: TV company asking for 'back pay':
I think a better analogy to the retroactive big screen TV payment scenario would be cutting employee pension benefits because the company/government realized it screwed up back in the day.
The appropriate taxpayer analogy would be the company shareholders taking a haircut when the poor planning comes home to roost.
I'd say you could also make a similar analogy that retroactively made employees pay more to keep their same promised level of pension benefits to make up for what their employer didn't contribute in years past.
Yes, the employees could be asked to pay, and/or have their benefits cut. The money has to come from somewhere, right? For public pensions, it is either the pensioners, the Union, or the taxpayers, or some combo. There's no getting around that.
I'm not sure there is any real analogy to a shareholder when we talk public pensions though. There are the bond-holders, but a default would raise interest rates hurting taxpayers anyhow. I can choose to buy shares or not in a company, that's tougher with a government.
Exactly. The underfunded pension issue is framed improperly and blaming the unions is a red herring. ...
Looks like we will end up agreeing to disagree on this one. I just can't see that it is a red-herring at all to say the unions share a significant part of the blame.
As I said before, the Union leaders are at the table with our politicians, and a wink-wink-nod-nod says
'Well, Mr Politician, you are up for election this next cycle, and you know we have not made our endorsements for our millions of members yet.... Now, about those benefits, you don't really want to suggest that our voting members have their contributions raised at this time, do you? No, I didn't think so....'
The taxpayers just don't have anyone at the table like that. Sure, to some degree the electorate has to take some responsibility for electing
[derogatory remark self-edited] who we do, but the Union is just closer to this, and IMO, should share more of the responsibility in fixing it. If you don't see it that way, then well, you don't.
As a point of reference - when it comes to underfunded private pensions, there is some insurance/backup from the PBGC (limited to $54K annual currently). The key point here is that is not a taxpayer bailout, it is funded by contributions from those same private corporations. If a company offers a pension, they pay into the fund (and pay more if their funding level is lower). So (at least to date) they don't go outside and ask others to pay the bill. Makes me wonder why a program was not set up like this for State and Municipal govt pensions? We wouldn't have this discussion, they would be forced to buy 'insurance', and the insurance would be there if needed.
Of course, if the claims against PBGC exceed their ability to pay, it's a new ballgame. A quick scan of the wiki article didn't give me sense of how well covered they are, and it's admittedly tough to predict how many businesses will go bankrupt with an underfunded pension.
-ERD50