I am reading a post by Mish which outlines the cuts that Christie has order for New Jersey.
This is part of Christie's speech that got my attention:
One state retiree, 49 years old, paid, over the course of his entire career, a total of $124,000 towards his retirement pension and health benefits. What will we pay him? $3.3 million in pension payments over his life and nearly $500,000 for health care benefits -- a total of $3.8m on a $120,000 investment. Is that fair?
A retired teacher paid $62,000 towards her pension and nothing, yes nothing, for full family medical, dental and vision coverage over her entire career. What will we pay her? $1.4 million in pension benefits and another $215,000 in health care benefit premiums over her lifetime. Is it “fair” for all of us and our children to have to pay for this excess?
I have gone on that people will complain about their pensions -- that they paid for them -- but my analysis of the numbers have never shown that to be true. The examples here are much further out then any numbers I have worked with.
Pensions are not supposed to be welfare programs without means tests, and that kind of unpaid for supplement is insane. I think of a pension plan as something that is paid for and welfare as getting something for nothing.
The only reason pensions have worked for as long as they have is the pyramid nature of demographics, not many collection, many paying in.