Now The Fun Really Begins.......1.01.10......
January 19, 2010
– Comments (12)
Senate GOP: Cut all public workers' pay, benefits
6 minutes ago
Senate Majority Leader Mike Bishop said Tuesday the pay of teachers, professors and state and local government workers should be cut by 5 percent and held at that level for the next three years to save money...
Ouch!!!! A 5% paycut for 20 plus million workers.
THE REAL INTERESTING PART IS WHEN ALL PENSION RECIPENTS WILL BE FORCED TO TAKE MASSIVE CUTS IN CURRENT PAYMENTS.
The problem is that most pensions are bankrupt or near bankrupt....and payments are currently being made from current contributors funding and NOT fair actuarial values in the fund. Many current pension recipients have already received more than they should have based on the current value of the fund. Going forward, payments should be cut dramatically and apportioned more fairly with current contributors.
My guess is this is going to light a big fire blow the AARP.......prepare, life is about to get really really interesting.
Welcome to the government crash post 1.01.10......which has never happened before in American History.
RSS Headlines
Fool UK