Federal pensions coming to a head
There is a looming crisis in federal spending that has been conveniently ignored by the mainstream media. Federal retirement benefits have soared for civil servants and military personnel, but the government has not put a single dollar in reserve to pay for the benefits! This is one more example of the irresponsible way Congress spends our tax dollars.
By law, private retirement plans are required to be pre-funded. Meanwhile the Federal government does not hold itself to the same standard, kicking the metaphorical can down the road by offering retirement benefits without creating a retirement account to pay the bills. Private pension plans hold over $2.3 trillion in stocks, bonds and other assets, and even state and local governments hold over $3 trillion in reserves to pay retirement benefits as they should.
Last year the federal government paid a record $268 billion in retirement benefits out of general fund revenues. All total, the unfunded liability for federal and military retirement benefits stands at $5.7 trillion, which is dangerously close to the unfunded mandate of social security which has an expected shortfall of $6.5 trillion. By abdicating their responsibility to assure the long term health of our economy, Congress chooses to kick the can down the road a little further each year, leaving us at a point where there is no more road to kick down.
The problem is not the government employees who were promised a retirement plan when they were hired. For many, retirement benefits were the deciding factor between a private sector career and choosing the security of a government pension program. My issue is with elected leaders who use money that should fund retirement benefits for government workers on pet projects and pork-barrel spending instead.
It is not a matter of stripping promised retirement benefits from retired federal workers, just as we have no desire to take away Social Security benefits from those who depend on them. The answer lies in significant reduction of the federal government by returning to Constitutional limits on federal power. Power must be returned to the states, ending the Big Brother mentality pervasive in Washington DC. We don’t need a Washington bureaucrat deciding what’s best for our communities, and it’s clear we also cannot afford it.
Our movement must stay vigilant and organized as we roar from the rooftops to stop the financial insanity running rampant in the halls of government before it is too late.
23 Responses to “Federal pensions coming to a head”
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All elected politians, including the president should have the same type of pension plan we have. A defined benefit plan would be fine. Probably $75.00 to #90.00 dollars for every year of service. With a vesting period of 7 years. They are no better then we are. In fact, they work for us, we don’t work for them.That also applies to all their other perks. They should all pay for their own health insurance just like most of us do. They are not privileged characters, even if they think they are.
Bill
Amen to Bill Musial.
Bill Musial is right on target. Amen
I don’t know why they are entitled to more than the majority of citizens, Their salaries are 4 times anybody similar, they have complete expense accounts so they pay for NOTHING and they have complete control and insight to insider trading so their investments are fool proof. Why should they get more???/ Let’s start be realistic.
Bill I agree 100%. I am 77 years old and have paid into S.S. all my working life. I draw S.S. from my Deceased husband and also a % of his Navy retirement. I live within my means. Our D.C. politicians should have to do likewise. I watch my checkbook. When I get low I know to STOP SPENDING. But
unfortunately The D.C. politicians just keep spending with no end in sight. I am a Christian and I read my Bible daily.
One day Jesus Christ is coming back and he will have a MAJOR HOUSECLEANING JOB.
Maybe 2012 will turn things around. I am praying for that. Have a great day.
What price shall we put on taking time out from a career to serve our country? From there we need to negotiate new retirement pkg. I would like to pursue their reliance on Social Security, then they would be sure not to let the funds run dry.
Who can initiate a change since they will not address their over the top benefits per my request to my Congressman.
I resent heavily the opening statement of your publication. Military Pensions have not skyrocketed – in fact we have3 not received any COLAS for two years now, and the active duty troops have only received a petty raise of 1-1.5%. The problem lies in the volunteer Army that was started in the 70′s, but us old farts are not driving Cadillacs or Mercedes. I do agree however that the Government had alol the statistics years ago, and should have been saving up the funds for the impact they should have3 expected. But PLEASE, do not put the blame on the older retirement plan soldiers! Do you know that at last blush, the Committee who is suppoosed to make the final decisions on everything also wants us to pay an additional 200 dollars a year to retain our coverage under Tricare for Life? Do they realize that we already pay damn near $1200 a year into the coffers because we have to have coverage under Medicare Plan B, or we cannot have Tricare for Life? I admit, it stinks, but how can you tell a soldier that he is going to take a pay cut, whilst his emminance flies around the country giving away and costing us money. How much do8ies it cost him per mile to fly around on Air Force 1, or ride on the new Canadian built busses they bought?
WE should start with revamping how House Representatives and Senators are paid… 50% of what they are paid now with no Pension… they must get their own like everyone else, participate in Social Securtity like everyone else.. all funds now in their pension fund transfered to Social Security Fund.. No lifetime pension for those collecting now.. convert them to Social Security payments.
Exactly HOW could this be done, since ‘they’ control the processes.. a dismal thought!!
Nobody sees the real requirement1 Go back to scratch. The Constitution will continue to be defied because there are no BASIC foundation requirements to be met — such as REALITY for starters! If we are to solve the contradictions that you point at, we must impose the FUNDAMENTAL requirements that the Constitution itself must meet, as well as ALL legislation passed — Reality, Validity, and Equity–all enforced under GOOD FAITH (having no purpose or means of evasion.)
Weiner is getting benefits for embarrissing himself and us, should that be? A congressman or senetor, gets retirement after one term, should that be? maybe they should be paid an hourly rate, maybe then they would stay in town and get more done!!!!! lets get that dummy out of the white house
Right-On Roger Girouard The Only Way Around This Federal Pensions Is Reduce There Payroll By 50% And Anyone Like “Loud Mouth Lil Weiner” Fired And Nothing, Yikeess, Get A Sarah Palin In Office And Watch The “Good Old Boys” Leave Office. God Bless America And The Tea Party Patriots With Sarah Palin.
Excellent comment— kinda depressing to think how MUCH money is WASTED after ONE term..and Creeps like Weiner continuing receiving money he nor more deserves than a jackass standing in a field!!
Just one more reason why there will probably NOT be the political turn-around predicted for 2012…..the ENTITLEMENTS. All the millions of people now or in the future receiving government checks….who do you think they will vote for?
Roger writes,
“It is not a matter of stripping promised retirement benefits from retired federal workers, just as we have no desire to take away Social Security benefits from those who depend on them.”
I think I disagree. What makes federal workers immune from the financial realities that the rest of us must face? Those financial realities apply to our 401Ks that have been “stripped” from our future security. Why should we as taxpayers then have to guarantee the security of federal worker’s pension benefits while our own savings have been decimated?
Why, as we face the inevitable “adjustments” in our “promised” social security benefits through certain social security reform, be obligated to make good the pensions of government employees. That makes no sense.
They should all be put on the social security plan just like every working stiff. and they should loose their salary when they are voted out,we are still paying every living president their salary somewhere around 400 thousand and providing body guards at 100thousand a year each.Man when I loose my job nobody keeps paying and protecting me until I die. Also we need to demand thatSS and medicare that comes from our checks be put back like it was before these sleeze balls decided to make it their piggy bank,all of the IOUs should be paid back then nomore taken out except for what it was intended for then there would be no shortage in these funds.Also we the People sould demand that the government be audited and all unnecessary jobs abd departments should be eliminated and the Fed should be audited and then shut down it is not a part of our government so why should it be controling our money that is what we have a treasurey department for not to just set on their ass’s and wait for the fed totell them what to do
Roger Stockton does good thinking and writing. And judging by the comments above, it inspires good thinking and focus. We have a long way to go.
Roger’s secondary issue (returning power to the States) raises a more definitive specter of just what we are up against–most of the State governments have gone kicking down the same road as the federal government.
Are we up to what’s ahead? I think so. What’s the alternative? As Dan McDevitt indicates, the entitlements are a strong-gravity black hole for votes. But if we let Dan’s pessimism lead to our own apathy (easy to do), then we will turn the Nation over to the entitled and the political establishment without lifting a finger.
That goes against every fundament that lead to the creation and development of this nation. And, personally, against ever fundament of my body and soul.
It comes down to how much value one places on his or her liberty and personal responsibility. And on the risks and challenges and opportunities that issue from that liberty and responsibility.
I have advocated for years that federal employees such as the President, representatives(their aids), and Senators are being overpaid with exorbitant salaries and pensions. I believe that their yearly incomes and pensions should be cut immediately and face the same scrutiny that all of us are facing at this present time. We should also cut the pensions of all living Federal employees by at least 33% and that also includes all sitting federal employees at this present time, this would save billions in the next ten years.This nation can pull our self out of the present debt situation in less than five years by cutting unnecessary federal spending such as the large pension’s and salaries for Representatives, Senators the President and pentagon workers. Also remove all federal credit cards and monitor there expense accounts for larger than need be expenses.If these idea’s sound good contact me I have other ideas that would save this nation from enormous debts
Watch for the new movement afoot: “The MOVEMENT” being forwarded with attachments providing details on this ‘movement’. The goal is to REPLACE the existing congress with individuals who’ve passed a polygraph exam and have pledged to serve only two terms as a Rep. + 1 Senate term (max.), accept a limited annual salary and forego a continuation of that salary. The method of selection and achieving ballot status is outlined, including examples of questions asked under poly-exam and a host of other information. Goal: To reach every district in the U.S. and those states with Senate races.
We as a country need to wake-up to the reality that elected Federal officials are crooks. The states need to take over the responsibility when it comes to financial commitments. The states need to pay as they go, and allow the Federal Government to accept the only responsibility our Constitution mandates – keep our country safe from foreign invaders (Military) and foreign enemies (defense), maybe international commerce. Our National budget is more than enough to take care of a diminished list of federal responsibilities. We must ask the Federal Government to stay out of our business – we cannot afford their stupidity and irresponsibility.
That’s what replacing ccngress with the right people offers.
You say that “By law, private retirement plans are required to be pre-funded.” That’s what the law may say, but the reality in the private sector is “promise, underfund, bankrupt”. The government is just following the example set by the private sector – Weinstocks, the meat packers, the steel companies, small banks and on and on.
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I agree that federal employees are getting too much for bad work. Thank the unions for this, and hiring quotas. But, when we are out there putting our butts on the line to keep the wars out of America, and keeping the bad guys away, I think I deserve the, “not so great”, benefits that are given to me. Besides, a large majority of our soldiers coming back are sick or disabled, and they are forgotten by the government who sends us to war. Also, our dollar, whether people want to admit it or not, is backed by our military power, not gold or industry. The industry is being destroyed by liberal socialist and their evil unions. I mean, congressmen and senators can serve less than 6 yrs, making bad decisions, and get benefits for life, now that is wrong. How about welfare? Don’t tell me the jobs aren’t there. Illegals cross to work, because the jobs are there. Doesn’t pay enough? Get two jobs, then they do it.
I did not agree to support anyone else’s family. I will help you get on your feet, but you made them, you feed them.