How about a cap on public pensions? April 2, 2009Posted by federalist in Pensions.
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?