My Letter to the Author of a couple of articles in today's edition (04.10.2011)
Tim,
Thank you for your articles in today's Denver Post. You brought light and insight to some of the issues in this current debate.
I suggest some investigative journalism looking into the 'open education on how to scam PERA' is taught to pre-retirees. The powerful union NEA instructs teachers who are approaching or considering retirement to 'scam the system' by grossing up their final three years of employment! For instance, a teacher who is working part time gets credit in years of service for their employment, yet if they go to full time in their final three years, this higher than average income is what is used to calculate their retirement (possibly for 30 - 40 years of pension income). Additionally, they are 'coached to bank their sick days and vacation days' thereby getting additional 'credit' for this time, further inflating the employee compensation that is used for the pension benefit. Does that make sense ???
Rules like this at PERA allowing this kind of behavior and public unions like the NEA that promote scamming the system only add to the struggle to maintain a promise to retirees. Your readers deserve more light on this behavior.
Also of interest, just a decade ago, when PERA was 'fully funded', in other words, had more than enough money, the IRS forced them to raise the benefit or pay taxes to the Federal Government. Now does that make sense ???
No wonder PERA is upside down - paying out more than they should, and for a longer period of time, escalating at un-sustainable rates.
No wonder taxpayers are furious.
See my blogspot: 'Doubt of the Benefit'
Steve Booren
Founder/Owner - Capital Consulting
Greenwood Village, CO
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No Will – No Way
ReplyDeleteAs we watch the european countries lack of leadership reforming government spending US citizens watch in dismay. So far there is a lot of political activity with leaders changing, most notably France. It appears that governments have over-spent and over-promised their citizens with welfare and social pensions, similar to our Social Security, Medicare and Medicaid programs.
The Wall Street Journal article, Stress Rises on Social Security (04.24.2012) portrays that it is “news” that Social Security will default 3 years sooner than anticipated (now 2033) impacting the current 56 million beneficiaries. It is hard to imagine that it is a surprise defunding Social Security by cutting the FICA payroll tax puts this entitlement plan in jepordy. It seems obvious to many that either you change the benefit (extend eligibility, change escalation, etc.) or you boost the revenue (increase the tax).
Unfortunately leaders do not seem to have the will to stand up and make tough decisions, tough changes. By ignoring, or as some call it “kicking the can down the road” leaders are choosing to get further and further behind the curve. That is what happened in Greece and Italy and is happening in Spain.
It takes will-power to make tough decisions and changes. All changes effect people, some positively, some not so positive.
The events in Europe can be a wakeup call to leaders and citizens in America. I hope they are paying attention.