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View Diary: Public employees now, too, feel the retirement squeeze (9 comments)

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  •  This Paragraph Is Not Complete. In Washington (1+ / 0-)
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    Sunspots

    State, the legislature decided to take away parts of pensions from those state employees ALREADY retired.  The Cost of living adjustment included in the pension contract was eliminated.  So employees who have already retired and who planned on what they were told, that being they would have a cost of living adjustment in their pension have now had the rug pulled out from under them.   Many probably would not have retired had they known that there was no COLA.  They weren't even given a chance to plan for this take away.  These employees were mandated to pay into their retirement system 6% of their wage every paycheck during their working years.  The state was suppose to be putting an equivalent amount into the pension fund every year.  They did not.  Now they need to make up for what they didn't pay by taking away part of retired pensioners' pensions.  Also know that there is no Pension Guarantee Corporation for public pensions.  These public employee pensioners are simply out whatever was taken from them.  

    Therefore some governments, including New York's, are concluding that the most realistic course may be to make less grand promises to those coming into the public workforce in the future. In other parts of the country, some governments are even trimming back promises already made to those now working but not yet retired.

    "I think that gay marriage is something that should be between a man and a woman.” - Arnold Schwarzenegger 2003

    by kerplunk on Wed May 08, 2013 at 05:27:36 PM PDT

    •  NO COLAS (2+ / 0-)
      Recommended by:
      kerplunk, Sunspots

      I took an early retirement from the State of Arizona, completely unaware that in the near future Colas would be a thing of the past.  I absolutely would not have retired when I did had I known that for the past 8 years I would receive no Cola whatsoever.   I have been flatlined for close to a decade.  Adding to this misery is the very real probability that my SS will now take a shave because of the chained CPI.  I would advise anyone nearing retirement to keep on working because your retirement package is apt to be made up of a bunch of empty promises.  

      •  Most workers have received no (0+ / 0-)

        COLA for years.  Why would retirees expect what workers are denied?

        Some professions have seen a decrease in salary and benefits over the years, as well as the threat of losing the job at any minute. A guaranteed income is the envy of most people right now.

        Besides, cola is not good for you anyway.  Have a healthy fruit punch instead.

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