Posts Tagged ‘pension’
While the world was glued to the developments in the Mediterranean in the past week, Poland took a page straight out of Rahm Emanuel’s playbook and in order to not let a crisis go to waste, announced quietly that it would transfer to the state - i.e., confiscate - the bulk of assets owned by the country’s private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva), without offering any compensation. In effect, the state just nationalized roughly half of the private sector pension fund assets, although it had a more politically correct name for it: pension overhaul.
By way of background, Poland has a hybrid pension system: as Reuters explains, mandatory contributions are made into both the state pension vehicle, known as ZUS, and the private funds, which are collectively known by the Polish acronym OFE. Bonds make up roughly half the private funds’ portfolios, with the rest company stocks.
And while a change to state-pension funds was long awaited - an overhaul if you will - nobody expected that this would entail a literal pillage of private sector assets.
Read more at ZeroHedge.com
Detroit native calls Motown’s economic and social ills a warning for the nation.
My ancestors helped build Detroit. The Fourniers were fur-trappers and farmers living hard by the Detroit River until the fledgling auto industry beckoned in the early 1900s with a better deal: $5 a day and a pension.
In the 1960s, my father opted out of the family business to be a police officer. He served Detroit for 25 years as part of the elite motorcycle unit that doubled as the riot squad. One of my earlier memories is of my parents, dressed in church clothes, leaving our house to attend the 1967 funeral of a riot cop.
Mom and dad raised four children at 15285 Coram in the city’s northeast corner, the same block upon which they were raised. All this to say: I love my hometown. And I hate what Detroit’s demise might bode for our country.
Read more by Ron Fournier at NationalJournal.com
President Obama’s budget, to be released next week, will limit how much wealthy individuals – like Mitt Romney – can keep in IRAs and other retirement accounts.
Under the plan, a taxpayer’s tax-preferred retirement account, like an IRA, could not finance more than $205,000 per year of retirement – or right around $3 million this year.
Read more by Karl Denninger at market-ticker.org
I’ve laid this out before but it’s time to do it again, because it’s coming folks.
The recent ditty on how “nobody needs more than $3m for retirement”, defined as “whatever you need to get a $200,000 annuity”, is just one facet of how this will play out.
Since I started writing The Ticker I have been repeatedly asked where one should put their assets to evade confiscation, whether through outright acts of theft, devaluation or any other means.
Read more by Karl Denninger at market-ticker.org
If Democrats have control of both the Senate and the House, as well as the White House we could all be put on the hook for not only Illinois’ pension liabilities, but those of every other state.
Read more at LouDobbs.com with video
More than 21,000 retired federal workers receive lifetime government pensions of $100,000 or more per year, a USA TODAY/Gannett analysis finds.
Of these, nearly 2,000 have federal pensions that pay $125,000 or more annually, and 151 take home $150,000 or more. Six federal retirees get more than $200,000 a year.
Some 1.2 percent of federal retirees collect six-figure pensions. By comparison, 0.1 percent of military retirees collect as much.
Read more by Dennis Cauchon of USA Today at CNBC.com
Milwaukee Mayor Tom Barrett has become the official poster child for Governor Walker’s budget reforms. That’s right. The unfailingly liberal mayor took a right turn on public employee benefits, and used the Governor’s reforms to save taxpayers $25 million a year.
In fact, during the debate over collective bargaining changes, Barrett even said the law requiring public employees to contribute to their health care and pension benefits didn’t go far enough because it excluded police and firefighters. Barrett complained that they were receiving “Cadillac benefits”.
Last but not least, Mayor Barrett sought to use the Governor’s reforms in order to get around a ten year old legal settlement with city workers. “It is my hope that all public employees should be required to pay more toward their pension,” Barrett wrote in a letter to Governor Walker.
The Wisconsin Club for Growth thanks Mayor Barrett for helping Governor Walker make his case. More importantly, we thank him for saving Milwaukee taxpayers as much as $36 million in 2012 through health care benefit changes he didn’t have to negotiate with unions, as a result of Governor Walker’s reforms.
Today, the Wisconsin Club for Growth launched several billboards in Milwaukee to thank Mayor Barrett— for using Governor Walker’s reforms! Now we need your help to keep them up.
Let’s help Mayor Barrett spread the good news that Governor Walker’s reforms are working!!!
Wisconsin Club for Growth
Abstract: Policymakers at every level of government are confronting the cost of fringe benefits for public-sector workers. The difficulty of placing an economic value on public employees’ pensions, however, means that policymakers rarely know whether benefits are excessive, especially as interest groups take advantage of the confusion by advancing misleading arguments. This paper discusses how to properly calculate the cost of public defined-benefit pension benefits, compares the cost of these benefits to private-sector retirement plans, and refutes two of the most common arguments that public pension benefits are somehow modest.
The generosity of public-sector pension benefits has come under increased scrutiny in recent years, as states and local governments search for ways to close their budget deficits. The intense battles over public-sector collective bargaining in Wisconsin and Ohio, for example, have been seen as conflicts over whether to reduce public-pension benefits for future retirees. Whether pension cutbacks are justified, however, depends crucially on whether existing benefits are excessively generous compared to those in the private sector. More broadly, policymakers cannot know if total compensation in the public sector—including salaries, benefits, and job security—is at an appropriate market level without a proper understanding of pension costs.
Read more by Jason Richwine, Ph.D. from Heritage.org