Marge - 04 November 2009 08:15 PM
Keep in mind, the increases noted above are ONLY for educators’ pensions. This is in addition to the “normal” school budget increases.
From what I could find, not counting educators, there are over 80,000 State employees. The taxpayer is also going to have to foot the bill for their pension increases.
Educators pensions are outrageous! Everyone has heard about employees who worked for a company 25 to 30+ years thinking they would have a nice pension when they retired, got the short end of the stick. A foreign company came in purchased the company and were not bound by the original companies contract with the employees regarding pensions. Those employees having worked for the original company for decades had a rude awakening when they discovered that pension they looked so forward to collecting was not there.
Example: Bethlehem Steel employees were told when they first started working for the company after graduating from high school, their pension was fully vested and they would receive a nice lump sum upon retirement. When they went to collect the lump sum, the lump sum wasn’t there. Why? A British Company purchased the company and were not bound by law to honor the original company’s agreement with the employees.
Example: Bethlehem Steel employees were told when they first started working for the company that they would have medical coverage when they retired. When the employees retired, it wasn’t long afterwards when the British Company took over Bethlehem Steel announced that they weren’t going to provide medical coverage to retirees any more. Within 2 weeks, the company announced they would provide medical coverage only for those retirees that resided in MD. Many retired Bethlehem Steel employees resided in PA. The PA retirees were up in arms so the British Company then changed their position and provided medical coverage for the retirees up to a period of one year. After the year was up, the retirees were forced to purchase their own medical coverage.
Example: A chap worked for another company retiring at age 55 with a pension they earned working for another employer. After they retired they decided to continue to work and were hired by Bethlehem Steel. Shortly after the chap was hired a British company purchased Bethlehem Steel. One year after the British Company purchased Bethlehem Steel, management told the employees they would have to work a couple of hundred hours overtime without pay because the stockholders did not receive the 12% return on their investment they expected. The chap quit working for British owned Bethlehm Steel asap. They weren’t going to work 200 hours overtime without pay. No one in their right mind would do that!
If employees in the private sector are not guaranteed a pension or medical coverage, then why should homeowners be required to pay pensions and medical coverage for educators? After all if it is okay for a private company to renege on their employees pension and medical coverage, then it should be perfectly okay for homeowners to renege on paying for educators pensions and medical coverage!