Under funded pension plan tidal wave ...

[Fermion]

NW, you can always get in your RV and leave. Then the pension spikers will have nobody to pay their pension.

I say in jest, but actually it was a factor in our plan to sell the house and be homeless. Our local city tried to pass a school bond which would raise our property tax by 40%, even though the old bond still is not paid off (a new roof and other stuff for the current school). The school is *gasp* nearly 25 years old and they want more teachers, smaller class sizes and new technology. Our house is over 30 years old and it still works fine.

So they will put up the bond again next year I am sure. It almost passed this year. Guess what we won't be paying next year! Property tax.

6 more days then KMA!

 

[NW-Bound]

Here's another aggressive goose. If it quacks, do not mess with it.

My wife told me a story of her parents raising some geese in the country home for them to guard the house, when she was about 5 or 6. She was attacked, and pecked in the navel. Ouch, that hurts!

 

[NW-Bound]

Hey Fermion, you think you can escape with that boat of yours? Check this video out.

 

[harley]

NW, you can always get in your RV and leave. Then the pension spikers will have nobody to pay their pension.

Not sure about WA, but that's not so easy to do in CA - Moving To Avoid CA Taxes? Be Careful. And I suspect more states are going to try to close the escape routes as budgets become increasingly strained. Run fast and far!

 

[Greencheese]

Not sure about WA, but that's not so easy to do in CA - Moving To Avoid CA Taxes? Be Careful. And I suspect more states are going to try to close the escape routes as budgets become increasingly strained. Run fast and far!

Isn't Wyoming or Montana already the RV state of choice for many RV'ers? So long as 1 state decides to make a buck being the RV'er state via a smaller than property taxes fee then what does it matter? The population is already mobile...

 

[harley]

I hope nobody here is in this plan - Pensions may be cut to 'virtually nothing' for 407,000 people.

In a last-ditch effort, the Central States Pension Plansought government approval to partially reduce the pensions of 115,000 retirees and the future benefits for 155,000 current workers. The proposed cuts were steep, as much as 60% for some, but it wasn't enough. Earlier this month,the Treasury Department rejected the plan because it found that it would not actually head off insolvency.

They're going to run out of money within 10 years, and the members are mostly truck drivers. Not good.

 

[Running_Man]

This actually is good news for current retirees as they will be able to keep their current pensions for 10 more years and then will be cut to the PBGC amount, so for net cash flow it is positive, for current not yet retired individuals there will be not much there

 

[NW-Bound]

If there's nothing left for young employees, why would they stay? Do they have any other choices?

 

[jazz4cash]

I agree with this... the holidays are IMO the worst... you are almost assured of it coming back to bite someone in the you know where..... but since the politicians who did it will likely be gone, who cares


One of the other things that I would like to see is them getting rid of the top 3 or top 5... say you worked as a regular Joe/Jane for 30 years... and then got a big promotion the last few years.... your pension looks like you were making the big money the whole time....

Now, compare this to someone who was in the top job for 25 of those years.... doing the hard work etc... guess what, your pension is the same as Joe/Jane who only did it 3 years!!!!

That to me is why the contribution plans are more 'fair'.... because it is based on your whole career earnings and there cannot be any spike no matter what happens.....

Megacorp froze the old DB pension and went to a career average formula. In reality the old plan was similar (no spiking) but the multiplier jumped around. New plan is 1.25 pct. There were no employee contributions. Of course it was only for old timers that were grandfathered. New hires got DC only. Fed Govt FERS DB plan is also fixed at 1 or 1.1 pct depending on yrs of service and age. Agree with others the pension holidays (awful term) are the worst.


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[cooch96]

If there's nothing left for young employees, why would they stay? Do they have any other choices?

Well, they're still getting a wage today. Many don't consider their future more than a few months out. Future employees will likely have to be recruited from near-horizon types.

 

[NW-Bound]

They are the ones for whom this video documentary was meant: http://www.early-retirement.org/forums/f28/documentary-broken-eggs-73783.html.

Except that the problem is not about "broken eggs". There's just no egg. Hello?

They probably say "I don't need no stinkin' egg".

 

[jazz4cash]

Megacorp froze the old DB pension and went to a career average formula. In reality the old plan was similar (no spiking) but the multiplier jumped around. New plan is 1.25 pct. There were no employee contributions. Of course it was only for old timers that were grandfathered. New hires got DC only. Fed Govt FERS DB plan is also fixed at 1 or 1.1 pct depending on yrs of service and age. Agree with others the pension holidays (awful term) are the worst.


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Went back and read what I wrote....the Fed pension does permit spiking since it is based on a high 3 formula.


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[jIMOh]

I don't see the Illinois constitution mentioned in either of the news links in this thread (being an Illinois resident I read them both), but okay.... I am waiting for the Illinois powers that be to start taxing retirement income, currently not taxed--that was a surprise to us when we retired.

My father said the same thing about NYS- he and my mother get enough exemptions that they do not pay state income tax on retirement income.