For decades, governments at every level have been overpaying government “workers.” Government employee unions have negotiated contracts in most states and large municipalities which result in government retirees living like kings among starving peasants.
In states such as California, New York and Illinois, state retirees commonly RETIRE on six-figure annual pensions. Even in districts where average household incomes remain in the $20,000 to $30,000 range.
Currently, Illinois is spending more on pensions for RETIRED university personnel than the State spends on CURRENT university operations. See here.
Now there are reports that government workers in Kentucky are sensing that long-suffering taxpayers cannot sustain the extravagant pension obligations of state retirees. They are retiring early hoping to vest their retirements before the system collapses. See here.
Minnesota’s State accountants recently took measures to correct future projections regarding the longtime viability of the State’s pensions. The State’s official ‘estimates’ had pegged the pension fund to have long-term 7% returns on investments. (Real-world returns on average investments are slightly lower.) When Minnesota accountants tried correcting future estimates, they found that the underfunding of pension obligations TRIPLED. See here.
