clifp
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Oct 27, 2006
- Messages
- 7,733
One of the sad things is that some of the entities that have underfunded their pension plans have also elected NOT to participate in Social Security. The gubmint entity saved their contribution to SS at the same time they were underfunding their own pension system. Or am I wrong?
In any event the poor employee finds out not only may the pension reduced (see Detroit), but they don't qualify for much of a SS benefit.
No you are right an astonishing number of state and local governments (presumably with the consent of their unions) opted out of paying into Social Security.
I was always surprised that they were allowed to do so. My guess is once or twice a century the 10th Amendment matters.
At the time I'd imagine the state governments didn't want to spend more to pay into Social Security. It probably wasn't to hard a sell since very few public sector jobs pay below the median wage, and social security benefits are highly skewed for workers making below average wages.
But now public employes risk really being hosed.