Wednesday, December 23, 2009

The pension bomb

From the NY Post:

...some 275,000 retired NYC employees — including 69,775 teachers, 44,290 cops, 17,404 firefighters and 13,664 others — cost city taxpayers $6.7 billion this year, as officials dipped into the general revenue to make up pension-investment shortfalls. That’s up from only $703 million in 2000. By 2016, taxpayers will be on the hook for $12.3 billion.

Pension losses from last year’s economic crash have hit New York taxpayers like a fiscal stealth bomb.

The city has to pay its employee retirement funds an extra $30 billion to cover last year’s huge investment losses, plus interest and higher benefit payments, The Post has learned.

The city’s five pension funds plunged in value from $101.9 billion to $79.5 billion in fiscal year 2009, according to city Comptroller Bill Thompson’s new Comprehensive Annual Financial Report.

The five funds — covering cops, firefighters, teachers, transit, sanitation and other workers — lost about $20 billion in stocks and other investments in disastrous FY 2009, which ended June. 30.

Since, by law, the city has to increase assets by 8% a year, that adds $8 billion to the shortfall, plus $2 billion from increased benefit payments.


Oh No said...

Doomberg's a great financial genius mayor, ain't he? Did I hear someone mention 4th term?

citationneeded said...

If this is interesting to you, there's a great book callled "While America Aged" which details the looming pension crisis. It spent almost 70 pages talking about how pensions fueled the last transit strike. This is a BIG issue guys and gals.

Anonymous said...

How do you impeach a mayor?

Anonymous said...

How do you impeach a mayor?

Wednesday, December 23, 2009

It should'nt be that difficult considering Clinton was impeached for his sex life. Hasnt bloomberg done enough obvious lying, switching parties, shady development, major Enron World Com style accounting and other major illegalities to be impeached? Then again barely 2 million people voted for the mayors race so I would not expect any various groups getting together to organize to even pronounce it.

Anonymous said...

I know you love to knee-jerk blame Bloomberg for everything, but let's actually try to be intelligent here. The pension problem comes from the state. These benefits were bestowed over many years and administrations.

Unions are killing this city.

kingb said...

thank your Anonymous #5

really annoying how everything on this great blog becomes a "blame bloomberg" rant

corrupt state and city officials from both parties, combined with greedy unions have caused this crisis over many years.

Public employee unions are a cancer to this city and state. Just take, take , take and stick everyone with the bill (plus poorer service). Politician go along & sell out for votes and endorsements. No one in the real world gets the kinds of benefits and retirement deals that these rats feel so entitled to (and that includes politicians).

It's enough to make me leave (one foot out the door already)

georgetheatheist said...

Hey kids just out of school. GET A GOVERNMENT JOB!!! Read The Chief. 20 years in and you'll be on Easy Street in your forties.

Klink Cannoli said...

-georgetheatheist said...
Hey kids just out of school. GET A GOVERNMENT JOB!!! Read The Chief. 20 years in and you'll be on Easy Street in your forties.

Oh, they're hip to it. Even some of us old time diehard capitalists are deciding to hop on the gravy train.

NYC employment=Government jobs=Socialist Society

When in Rome...

kingb said...

well soon i wont be paying into the pot, so at least i can feel a little better about that.

no way this can be sustained into the future..we already introduced a new pension tier which is a good not so fast young ones, you will constantly get screwed in favor of older dead weight

Anonymous said...

Back in the 80's when everyone was making big money in the private sector,i was chided for my low paying civil service job.I did what i loved ,as did some of them. Now thier bad fortune has made me the bad guy. I paid 7% of my salary into my pension.I paid(and still do)for my medical.The main reason people take a civil service job is the pension.the trade-off is the lwer pay than could be had in the private sector.You can't have it both ways.Also when the market was doing very well the city/state paid nothing for a about 2 years. Now when they have to pay,they complain,poor managing on their part.

kingb said...

7% is very reasonable
Not everyone pays 7%. Not even close. That plus allowing people to retire earlier is a horrible combination - both undeserved and unsustainable.

And dont get me started on those who perform their jobs poorly, just hanging around and doing bare minimum till they collect their pensions, and yet are unjustly protected - further burdening and corrupting the whole system.