MACS wrote:Hockeydad, that was done by a student who looked at PUBLIC records. What they WANT you to see.
We contribute 9% of our pay for 3 yrs. We're not vested until 5 yrs. All those folks who work there and leave before the 5 yr mark contributed all that money and will never see a dime of it. The average calpers retirement is $36k a year.
It's the city officials and board of supervisors (et al) who are doing the damage. NOT the average worker. THEY need to take the larger pay cuts.
It is more than just government records. It is also affected by how government has to account for long term liabilities versus corporations. The government rules allow them to not track shortfalls on their books whereas corporations go to jail for the exact same thing. There is a reason that companies dumped traditional pensions for 401Ks.
In a traditional pension, you are guaranteed a certain return after vesting. The government now has to take that amount you paid in and invest it and turn it into a much larger amount. If they are not successful, they have to make up the difference with taxpayer money. The employee takes zero risk and the pension fund takes all risk. In a 401K, the employee takes all risk.
Operators of traditional pensions have figured out that they generally lose unless they were incredibly good at investing. Corporations go bankrupt when this happens. Governments raise taxes or slash services.
The traditional sweetheart government pension for many years was viewed as in lieu of compensation. People could make far more money in the private sector but the pension is why they stayed. Over the last ten years, private sector pay has stalled while government pay kept increasing such that people can make more in government and also get the sweetheart pension. Globalization will keep private sector pay from leapfrogging again but it has no affect on the continuing growth of government pay. Only taxpayer outrage can affect government pay.
Government is the place to be....right up until the moment that it isn't.