Monday, September 6, 2010

The Coming Pension Nightmare

I have been writing about the pension the public sector employees are getting and how it is going to lead us all in trouble. Although since the public sector employees earn less than the private sector employees, they are entitled to their pension but when there should be line drawn about how much pension these employees should get. States that are in financial trouble are skipping pension payments into the pension funds each year just to balance their budget.

Even with skipping pension payments, the states are having trouble balancing their budget but in their infinite wisdom, they have been giving employees raises that ultimately raise their pensions. This cannot go on and this Pension nightmare will have to come to an end. If the private sector employees even with their higher pay are having pension plans replaced by 401K and other private retirement plans and increasing paying their share of the health insurance. It is time now to replace the pension plan in the public sector also because the Pension plans are already in deficit all across America so there is no point keeping it growing. It should be frozen after fulfilling their present obligations and the funds transferred to a privately managed 401K and other private plans if we are to reduce our states deficit and not burden our future generations (which are already burdened by student loans and family obligations and fewer job prospects).

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