Few local governments are signing up for a dubious program of paying pension costs...a program that allows towns, cities, villages, counties and even the state itself to pay current year obligations over ten years at an interest rate of 5%.
This is such a wicked case of kicking the can down the road and at a pretty high rate of interest.
Pension obligations are rising sharply as the system had been predicated on ridiculous assumptions on the investment growth of the fund. The 2008 stock market dump is showing up now in the rates charged participants on behalf of employees.
The Paterson administration offered up a typical Albany answer.
Local governments are wise to avoid this scheme to prop up a system in need of serious reform.
Local government leery of pension borrowing plan theithacajournal.com The Ithaca Journal
2 comments:
Pension obligations are rising sharply as the system had been predicated on ridiculous assumptions on the investment growth of the fund.
True, but pension costs are up even more because of the lawmakers ridiculous generosity with our tax money and our grand kids' tax money and lack of keeping pace with the market of employment benefits.
What private sector job pays so well? or allows for 20 years and retirement at 40 years of age?
Even the Mayor will get some of this after serving and vesting as mayor. Not that He does not deserve it even more than the next guy. The problem is that the next guy does not deserve it either.
"Deserve" is a word that should be stricken from our language. Even if someone "deserves" something does not mean the tax payer deserves to have to pay for it.
Hey 11:10 what job in the public sector allows for a 20yr. retirement? I have to work till I'm 62 for an unreduced benefit. You're talking about the Police and Fire retirement plan. Don't forget the pols approved this, In 1994? Pataki signed the Tier Equity Bill.
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