Date Posted:Saturday, March 05, 01:14:02pm Author: TEXRA Subject: It's a matter of interpretation..... In reply to:
's message, "The Wisconson Lie Exposed" on Tuesday, March 01, 03:13:21pm
Though the employee's salary might be 5% higher without the retirement plan, that 5% assuredly does NOT pay for the full cost of their retirements. Thei retirement is a guaranteed amount which is much higher than what they conribute through deferments. The state - much like this nation - has not funded those retirements. Their retirement is in the same boat as social security and welfare, that is saying that they are huge, unfunded and unrecognized liabilities.
That said, the retirement plan offered teachers contains a guarantee that far exceeds the guarantees that private employers offer in general. Taxpayers do not wish to fund these rich pensions in the future.
The great benefits of a defined contribution plan at both state and national levels are simple. First, taxpayers of the future will not be stuck with a bill for underfunded promises from past legislatures. Second, the true cost of pensions would have to be reported as part of any deficit or surplus reporting - the current method of government entities ignoring these huge liabilities is criminal at the least. Third, it puts government employees' retirements on par with those of their true employers - the taxpayers.
Yes, ther have been faults, lies, and underreporting involved with public employees retirement costs but continuing a broken system is NOT the answer.