We need a refresher course on pensions.
One of the key parts to a pension system that pays out benefits during one’s golden years is someone actually putting money into the pension fund before those golden years ever begin.
State and local governments, really the politicians who run them, have been awfully generous to state workers, promising hefty pension benefits, and in many cases lifetime healthcare. Only problem is that, as with much of what politicians do, the promise of a pension is easier to make than the payments to actually fund those pensions.
Georgia has a looming $16 billion shortfall.
Michael Nehf, executive director of Georgia’s Employee Retirement System, says, “Our liabilities are growing faster than our assets. Itâ€™s not something we have had to face before, with the baby boomers moving from active to retirement status . . . and living longer.”
What are the options? Thankfully, people are still going to insist on living longer. So, what’s left is either to reduce benefits, a bait-and-switch against retired employees, or to raise taxes, socking it to everyone else to cover the politicians’ big promises and teensy-weensy sense of financial responsibility.
But one more thing: let’s get out of these deals where politicians can keep dangling benefits while in office that someone else has to pay for, later. An employer and employee providing for retirement shouldn’t skip the “providing” part.
This is Common Sense. I’m Paul Jacob.