Back now.psk836 wrote: ↑Mon Jan 14, 2019 8:42 amNobody was "earning" $500,000 per year over their entire career. The magic of government pensions is they typically pay based on average salary over the last five years of employment, and government employees therefore rack up hundreds of hours of overtime during their last five years to max out their pensions.stuporstitionist wrote: ↑Mon Jan 14, 2019 8:20 amidiot. The people getting $350,000 pensions made 500K/year at their job (University Chancellors, etc).
Try the math on a $55,000/year contribution (11% of 500K) for 20 years with the magic of compound interest. Of course you also need to factor in whatever the government (as employer) contributes.
I'd love to, but hardly any private sector firms offer pensions any more. Companies have moves from defined benefit plans to defined contribution plans.
1) SS isn't a ripoff.
2) SS is only a part of private sector retirement. It was never meant to be a full retirement plan.
So state employees get up to $350,000 per year as a payoff for call it $1,000,000 in contributions plus interest. Meanwhile I will have paid in close to $1 million in contributions plus interest into social security to get something like $16,000 per year back. Tell me again how this is comparable.
BTW, in both of our examples we've used employee contributions and the magic of compound interest. What have we left out? Oh yeah! We haven't seen a single taxpayer dollar included yet.
1) Employees can only rack up overtime when the employer allows it.
2) Many government workers don't get overtime (teachers, for example).
3) Some public sector jobs require mandatory overtime - one example are the Police in my town.(cheaper than an additional hire).
4) the people working massive overtime aren't the ones with a $350K/year pension.
$60K/year for 20 years at 7% will generate the funds necessary to support a $350K/year pension.