Loading ...Government Employee Retirement Costs
February 6th, 2008The Pew Center On The States is funded by a pile of cash left behind an early American business family, the members of which are long dead. Several decades ago, a group of do-gooders convinced that government was the best way to accomplish charitable works (never mind government’s much greater overhead than traditional charities) wrested control of the Pew Family’s legacy - some $5-billion dollars - and America’s richest left-wing “think tank” was born.
This history is particularly startling given the Pew Trust’s latest research report, titled “Promises With A Price.” This report compiles and analyzes the mind-boggling new taxes that working families in America (and Nevada) are going to have to come up with in order to keep all the retirement promises that our politicians have made to our government employees. It is important reading for all citizens.
Nevada’s pension funding level is below the norm for the 50 states, and it faces a fairly significant liability for non-pension benefits. These costs, principally for retiree health care, were projected to rise 20% from 2008 to 2009, according to information presented to the Nevada legislature in early 2007. If the state moves toward pre-funding its non-pension liability, the required annual contribution would be about four times the pay-as-you-go cost. But moving toward full funding would be smart fiscal practice because it would reduce the long-term bill considerably, from $4.1 billion to $1.6 billion. This is because the interest the state is likely to earn when it invests more money over the long term can be applied to paying down the bill.
Here’s a fact sheet on Nevada from Pew.
February 6th, 2008 at 7:53 pm
1. Of course, we should raise taxes to fund retiring government employees at their full salaries or near full salaries.
According to Ralston and the Sun, raising taxes is the solution to all problems.
I am also sure that Ralson and the Sun will love a law that says we all get full retirenment salary.
2. As this problem grows it has and will continue to put a squeeze on government budgets.
3. Eventually, there will be a breaking point and retiring employees will be short changed on their pension payments.
February 8th, 2008 at 11:47 pm
James, you’re very optomistic. I wish I shared your opinion, but in my limited experience Government doesn’t know the meaning of “breaking point” - be assured they will rape and pillage the private sector to starvation levels to ensure that retired police and firefighters are getting their “fair” $90,000 a year or whatever ridiculous figure it is. Not until every non-government employee is wandering homeless and every business is shut down will they be satiated - and then, they will probably try to figure a way to sell our organs since it’s not fair that some of us have two kidneys, etc. I know that’s ridiculous, but every time I think something is too ridiculous for government, it actually happens.
The only good thing is that liberals will cut school funding before they ever consider cutting pension benefits.
It is times like this that perhaps we should look to China - where they execute corrupt politicians. Perhaps this would clear the field a bit.
February 9th, 2008 at 7:14 am
I’m very comfortable with my retirement from the state of Nevada.Thank you,thank you, thank you.
February 9th, 2008 at 7:35 am
James and Doug,
Escellent points! Don’t re-elect any one, including Senator’s, who voted to reduce the retirement contributions of public employees.
Don’t re-elect any one, inlcuding Senators, who voted for AB68 a few years ago.
Don’t re-elect any one, including Senator’s, who voted to ensure that our cops and fireman are only young and vibrant.
Don’t re-elect any one, including Senator’s, who try to scare you with funding costs twenty years out! Hell, if you fiqured your fixed cost of food for the next twenty years, you’d scare yourself silly.
February 10th, 2008 at 4:34 pm
If you are comfortable in your retirement, thank a State politician. If you like your current situation, support a socialist. If you feel responsible for the future of our nation and Nevada, not to mention the unbearable burden we are placing on out children (taxation without representation, by the way), you have nobody in our leadership system to thank. This is a hard pill to choke down, but, I hope you are comfortable in your retirement. I will find it difficult to feel sorry for you, however, when the checks either stop coming or bounce.