Nope, I don't think so. I would hope that a life's work would get you a comfortable retirement with medical care.
Coach
State and local govt's offered generous pensions in lieu of current pay because the politicians figured they'd be long gone when the time to pay arrived. They "took care" of their current work force by promising them future compensation, then inadequately funded pension plans and relied on future generations to come up with the money.
The best solution to control state and local unfunded generousity is to legislate federally that govt pension funds must by 100% funded (with the most conservation methods of calculation possible) at all times. If you're going to promise your team huge future rewards, OK, but set aside the money to pay for those rewards as the rewards are earned.
Apples and oranges.I agree, there should be a law requiring all companies to offer the same benefits to their employees as states and fed employees.
The best solution to control state and local unfunded generousity is to legislate federally that govt pension funds must by 100% funded (with the most conservation methods of calculation possible) at all times. If you're going to promise your team huge future rewards, OK, but set aside the money to pay for those rewards as the rewards are earned.
True. Just as some public employees may say they have chosen the "lower pay" (increasingly not as true in many fields) for the benefits and job security, so too have those choosing private sector factored everything in as well. But when private sector workers see their pensions frozen, suddenly that deal they signed up for was changed for the worse.Take the example of a person early in their career making a decision between two private jobs. One is lower pay, the other offers better long term benefits. But those benefits are a "promise", and he has no real idea how solid the promise is. So yes, I think if a company even hints at some benefit to attract employees, they should be required to back it fully.
If governments at any level ever tried to equalize public salaries to the private sector, i.e. raise taxes, it would be pitchfork and torch time.
I agree with the existence of the perception of "highly paid" pubic employees. The reality may be yet another thing. It really depends on the govt entity, level (fed/state/county/city/town), the c*reer field, the health of the agency's budget, the size of the tax base. etc. Too many variables to generalize.Some would argue this is already the case....... However, like I always say, any public employee that thinks they have a poor situation could always try the private sector.......
Nope, I don't think so. I would hope that a life's work would get you a comfortable retirement with medical care.
Coach
Life's work??
20 years?
Plus, every city, county, state, water district, anything paid for by taxpayers goes along for the ride.
5 years from now things may be much different with private industry thriving and government jobs again going wanting whereby the defined benefit pension again would have to be enhanced instead of downsized. Hard to imagine today, but the psychology changes on a dime.jug
Well thats what many local and state pension plans do. They set up a pension fund, they pour money into it, some from the locality, some from contributions of workers, and they manage it using actuarial methods to keep the fund fully loaded over the course of time to pay out obligations.
The NYS pension fund works this way, that is my pension plan, and it does work, in good times and bad. It all depends on who manages it but regardless managing such a fund is a balancing act in which you have to be conservative to an extent, but yet squeeze out adequate funds from investments. From time to time adjustments are made to employee/employer contributions to keep the fund actuarily sound. Contributions fluctuate according to needs and sometimes are not even needed.
Let's not get too carried away here. With 70% of the portfolio in equities and real estate on March 31, 2008 (the end of it's last fiscal year), I seriously doubt that the NYS state pension plan is actuarially funded today. How can it be? Since then the stock market is down over 40%.
New York State and Local Retirement System
See page 63 for asset allocation
Why the heck not! Of course, we would have to equalize the salaries as well. It's only fair, right?I agree, there should be a law requiring all companies to offer the same benefits to their employees as states and fed employees.
I could do that. I'd have to lose a little bit more of my hearing first ... but.... 50k - plus benefits. Do they have dental?
Our school district is looking to hire 3 new kindergarten teachers, only 1 year experience necessary. Starting pay? $50,000 plus benefits. Not bad for a 24 year old teacher......
Again, demographics play a role.
I agree, there should be a law requiring all companies to offer the same benefits to their employees as states and fed employees.
Believe me... if there was a job out there with a high enough demand... and the pay was not high enough... you can believe the salary and benefits would eventually rise until people filled that need.