Public Pensions Rise While Private Pensions Fall
There has been a great deal of discussion of late regarding the trend in the private sector to scale back on pension and retirement offerings. This article discusses the opposite trend occurring in the public sector - an trend upward in pension and retirement benefits for public sector employees. According to the article:
- A December study of 85 big public pensions in all 50 states — covering three-fourths of public employees nationwide — found that governments continued to enhance benefit formulas, ease early retirement and improve other benefits from 2000 through 2004 despite states' financial problems. The increases were enacted on top of even larger benefit changes approved from 1996 to 2000. The study, conducted by the Wisconsin Legislature, is one of the most comprehensive on the issue.
- Average annual benefits for retired state and local workers grew 37% to $19,875 from 2000 to 2004, the most recent data available, according to the Census Bureau. The rising payments reflect the early retirement of baby boomers, who started to qualify for full benefits in 2001, at age 55, under most government pensions.
At the same time, "the portion of the private workforce enrolled in plans that pay monthly benefits for life has fallen from 39% in 1980 to 18% in 2004, according to the Employee Benefit Research Institute."
Seems to me that our elected representatives may be giving away the store, rather than dealing with reducing costs now. It's easier to give away something that will come due when you are not around to be responsible for it. On the other hand, private sector employees will continue to feel the consequences of reduced private sector retirement benefits as their tax dollars fund these lucrative public sector benefits.
I started working for a city health care agency in 1993. I'm in a category called Tier 4 our retirement benefits are not as good as those who began city service in the 60's and 70's.
As you commented many of the retiree's are baby boomers that get to retire at 55 my retirement age is 62.
When discussions about government workers' benefits happen there is always a focus on what we get in the future. However, we have to fight for our little 1% and 2% raises, as a group. If you do an exceptional job as an individual you don't get recognised with raises, bonuses or promotions.
Advancement and promotions really don't depend on job performance.
The work that gov't health care workers do is dirty and dangerous. We deal with crack addicts, alcoholics, criminals, and have to visit people's homes unescorted.
I get job security, health insurance for my families and, if
I make it to 62 in any kind of decent health, a pension. I'll never be rich or own a home, but I feel the job I do is worth the sacrifice.