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How about a cap on public pensions? April 2, 2009

Posted by federalist in Pensions.
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The more we learn about public pensions, the more we shake our heads in disbelief.  Adding insult to injury, taxpayers whose own individual retirement savings have been savaged in the markets are being forced to pony up more money to replace mismanaged funds for public pensioners, whose lifetime retirement benefits are guaranteed by the government.  A recent Boston Globe editorial echoes the outrage.

Public pension systems have been so grossly abused that I propose a retroactive cap: No individual should be allowed to collect more than $100k per year in combined government-backed retirement benefits (i.e., the total value of cash pension payments, subsidies, and healthcare).

Or, following the current custom of righting all wrongs through the tax code, how about a 90% federal tax on all government-source pension benefits that exceed $100k per year?

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1. federalist - April 3, 2009
2. federalist - April 10, 2009

USA Today reports “Benefits widen public, private workers’ pay gap“:

Public employees earned benefits worth an average of $13.38 an hour in December 2008, the latest available data, the Bureau of Labor Statistics (BLS) says. Private-sector workers got $7.98 an hour.

Overall, total compensation for state and local workers was $39.25 an hour — $11.90 more than in private business. In 2007, the gap in wages and benefits was $11.31.

The gap has been expanding because of the increasing value of public employee benefits. Last year, government benefits rose three times more than those in the private sector: up 69 cents an hour for civil servants, 23 cents for private workers.

3. federalist - April 10, 2009
4. federalist - April 30, 2009
5. federalist - June 1, 2009
6. federalist - June 24, 2009

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