Let me check my stub again 'cuz that can't be right.
"City considers hike in retirees’ pensions" June 18, 2012|Andrew Ryan, Globe Staff
As
cities and states across the nation take aim at public employee
pensions, Boston City Hall is engaged in a very different debate: how
much to increase retirees’ checks.
Mayor Thomas M. Menino is
proposing to boost the annual cost-of-living adjustment for most
pensioners from $360 to $390, a $30 increase. City Council president
Stephen J. Murphy is pushing for more, seeking a $90 increase over the
current rate.
It's no banker's bonus; in fact, it's less than a buck a week.
What is this puddle of piss doing in my hand?
Other Massachusetts cities and towns have had
similar debates. Last month in Brookline, voters rejected the advice of
the Board of Selectmen and approved a pension increase akin to what
Menino is proposing. In Hampden County last year, the retirement board
that covers 18 towns enlarged the annual cost-of-living adjustment by
$180.
In
contrast, Maine lawmakers canceled all cost-of-living increases for
three years for the roughly 37,000 beneficiaries in the state pension
system.
Must be the fault of that Tea Party fella.
Last month, Chicago’s mayor, Rahm Emanuel, called for a pause on
cost-of-living increases for a decade.
Isn't he a Democrat?
Residents in San Diego voted
overwhelmingly to eliminate pensions for newly hired city employees -
except police officers - and institute a 401(k) program.
See: Walker Wins Wisconsin Recall
Also see: In the 401(k) era, 70 may be the new age to retire
Let's face it, folks; we will be lucky if there is work because there isn't going to be a retirement.
But
Massachusetts county retirement boards covering almost 200 cities and
towns have approved larger pension checks by increasing the yearly
cost-of-living adjustments, according to Ralph White, president of Mass
Retirees, which represents the Commonwealth’s retired public employees.
“At
first blush, it does look opposite to the trend,’’ said Jean-Pierre
Aubry, assistant director of state and local research at the Center for
Retirement Research at Boston College. “But Massachusetts differs from
these other plans.’’
Unlike 70 percent of public sector workers
nationally, municipal retirees in Massachusetts are not eligible for
Social Security, which increases to keep up with inflation, Aubry said.
Oh, really?
But historically in Massachusetts, only the first $12,000 of a pension
has been eligible for cost-of-living adjustments. That cap has kept
increases comparatively low. In recent years, the increase has been 3
percent of $12,000, which added $360 a year to most retirees’ checks.
So it is NOT the GRAVY TRAIN the CONVENTIONAL WISDOM being blared by politicians and the mouthpiece make it out to be, huh?
Public
employees in Massachusetts contribute a share of each paycheck to the
pension system, with the workers who make more than $30,000 putting in
11 percent. That is a much larger share than in many other states, which
may explain the decision by some Massachusetts pension systems to
increase payouts.
What, what, what? I was under the impression that the pensions and the like were FREE MONEY DOLED OUT BY TAXPAYERS!!!! WTF?
“It seems counterintuitive when you look at our
brothers and sisters across the country,’’ said Joseph E. Connarton,
executive director of the Public Employee Retirement Administration
Commission.
“But
our brothers and sisters nationally are not on the same page because
our contributions have been higher and more consistent,’’ he said.
State
lawmakers passed a slew of changes in recent years designed to stop
pension abuses by some retirees. The moves pushed the minimum retirement
age for some workers from 55 to 60; decreased some benefits; and
adjusted the formula for pension payouts by basing them on employees’
last five years instead of three years.
That's because the TOP ADMINISTRATORS and PUBLIC SERVANTS(?) were the ones FEATHERING THEIR NESTS with LAVISH SELF-SERVING DEALS that they themselves were in charge of approving!!!! How good is that!?
Crucially, the changes also allowed cities and towns to increase the base for cost-of-living adjustments.
“It’s actually bringing it closer in line with the rest of the
nation,’’ Aubry said. “The existing [cost-of-living adjustment] was very
meager compared to others.’’
In other words, YOU WERE FALLING BEHIND ALL THESE YEARS, Massachusetts citizens.
Related: State Street Stole From Ohio Pension Fund
Oh, yeah, BANKS were also STEALING YOUR PENSION MONEY!
But Samuel R. Tyler, president of
the Boston Municipal Research Bureau, argues that it is “not fiscally
prudent’’ for the city to promise to increase pensions in a fragile
economy. Critics question whether pension funds can generate enough
long-term revenue, plus there is the pressure of rising retiree health
care costs....
Related: Mass. Unions Gave Back $80 Million
Did you see where it went?
The city has roughly 14,400 retirees with an average annual pension of
roughly $33,000, according to the Boston Retirement Board. But as
salaries have increased, so have pensions. A study by the Municipal
Research Bureau found that for the 450 people who retired in 2009, the
average pension was $49,480.
Many
private companies now offer 401(k)s for retirement, which shift risk to
employees, who can lose their investments when the economy falters.
Yeah, that ALREADY HAPPENED a COUPLE TIMES, and it never really came back!
A
pension system keeps the risk with the government, which is obligated to
keep cutting checks for retirees and their beneficiaries.
They are CALLED PROMISES in the form of LEGALLY-BINDING CONTRACTS, and apparently they can be BROKEN ANYTIME when it comes to WORKERS!
“It’s guaranteed, irrespective of the city’s finances or market condition,’’ Tyler said.
Jim
Durkin, spokesman for Council 93 of the American Federation of State,
County, and Municipal Employees, rejected the suggestion that the city
could not afford the $30 increase.
“This
is not a budget buster by anyone’s standards,’’ said Durkin, whose
union includes roughly 2,000 city workers. “It is an extra copay on
somebody’s prescription drug plan. Thirty dollars is more of a gesture
toward these retirees.
“It’s a positive and a well-deserved
gesture,’’ Durkin said. “It’s recognition that they are not getting rich
by any means on a public employee pension.’’
It's chump change, but I'll take it!
--more--"
