How'd you like a six-figure pension? Work for the government
The New York Times has an article on the its home state's pension problems:
"In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with a base pay of about $74,000 a year. His pension is now $101,333 a year.... According to pension data collected by The New York Times from the city and state, about 3,700 retired public workers in New York are now getting pensions of more than $100,000 a year, exempt from state and local taxes. "
There's more talk these days about the coming intergenerational war (such as this article by Anatole Kaletsky), when younger folks balk at paying higher taxes to fund the retirement benefits of baby boomers. But there's another war coming: public vs. private workers. How will citizens like paying higher taxes so public employees can retire early, get inflation-adjusted pensions, and health care in retirement?
Government employees will say this is compensation for earning a lower income. That may be true in some cases -- for example, a federal prosecutor who could earn more as a defense lawyer. But I was a private-school teacher for five years and earned much less than a public-school teacher.
For more on the coming pension calamity, visit PensionTsunami.com.
Robert Brokamp is the senior advisor for The Motley Fool’s Rule Your Retirement service.