Outlandish Pensions Push Providence Toward Bankruptcy

[FinanceDude]

Don't know how widespread it is, but this could be window dressing to appease taxpayers if the pensions are outlandish. There is no way any city employee should have a pension of $500K/yr - none. Again, I don't know for sure but IL is well known for political shenanigans. Not sure Chicago is a good example to use...
Chicago union officials face criminal probe over city pensions - Chicago Tribune

Leave it to Chicago to figure out "triple-dipping" versus "double-dipping".............

In Wisconsin, goverment retirees are taking their pensions, and a fair number are getting "called back" to their old jobs after a 60 day window. Then they are getting hired at the same salaries as before...........

 

[Texas Proud]

Leave it to Chicago to figure out "triple-dipping" versus "double-dipping".............

In Wisconsin, goverment retirees are taking their pensions, and a fair number are getting "called back" to their old jobs after a 60 day window. Then they are getting hired at the same salaries as before...........

Not just triple dipping... but doing it with the same credits

At least all the double dippers I have heard about had two different jobs and time worked was only credited to one at a time...

 

[ChadR]

Are they ANNUALLY getting 5-6% cola's on their pension? Dont they understand the magic ( or destruction) of compound interest? Their pensions would double every 12 years. Im not a pension basher because I am one, but that is outrageous and destructive for everyone including the pensioners.

From reading the article this is what stuck out like a neon sign to me too. 5-6% a YEAR is insane!

 

[ERD50]

RE - the two-tier system in IL:

Except for the intergenerational squabbles and resentment it may create when new hires are made to feel like "second class citizens" compared to those grandfathered into the sweetheart deals.

At first I was going to somewhat disagree - the new people sign up for deal B, so that's what it is, get over it, time's they are a-changing', etc,. But...

Say person A is hired in 2010, and works alongside person B hired in 2011 for 30 years. Their career is pretty much identical, but person A will retire with much higher benefits than person B. Yes, that will result in some (very justified, IMO) 'class warfare'. Not good, not right. I had not really thought about that scenario down the road.

They really needed to make the changes apply to everyone for benefits calculated from 2011 forward (no change to what you already earned). But they feared they could not get it passed, would not get re-elected, or that it would be challenged against the IL State Constitution.

As a general rule, anytime a 'gate' is put in place, rather than a 'slope', it creates real problems.

-ERD50

 

[Mulligan]

Leave it to Chicago to figure out "triple-dipping" versus "double-dipping".............

In Wisconsin, goverment retirees are taking their pensions, and a fair number are getting "called back" to their old jobs after a 60 day window. Then they are getting hired at the same salaries as before...........

If I went back into my public career field, my pension would be suspended immediately, until I quit again. Excellent reason to stay retired!

 

[Hamlet]

In the Wisconsin case, it sounds llike the re-hires don't earn any additional retirement, and their health care is already covered by the retiree health care plan, so from the district's standpoint they look like an employee with no benefit costs.

Retired teachers return to classroom - JSOnline

Since the state is already on the hook for the retirees' health care and pension costs, it probably makes sense to choose a retired teacher over a new hire whenever you can.

From the article it doesn't sound like these are always people getting the same position as the one they left.

In Wisconsin, goverment retirees are taking their pensions, and a fair number are getting "called back" to their old jobs after a 60 day window. Then they are getting hired at the same salaries as before...........