The Kentucky public employee benefits plans were underfunded by $29 billion as of June 30, despite House Speaker Jody Richards' suggestion that same week that the General Assembly had just fixed the problem during their expensive special session.
There can be no question the problem is far worse now.
So, Gov. Steve Beshear has called a press conference for tomorrow at 11 am to make an announcement "regarding pension reform."
A Beshear spokeswoman declined to offer any details of his plan prior to the dog-and-pony show.
Maybe we will have another Blue Ribbon Commission.
Nothing positive will happen on this front until public employee benefits in Kentucky are scaled way back to more closely reflect what is available to taxpayers in the private sector. And more government spending must immediately be redirected toward lowering the unfunded benefits before Kentucky goes bankrupt.
Monday, December 29, 2008
Newsflash: state fringe benefits still too high
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5 comments:
Then you should propose raising state employee salaries to be closer to private sector workers to offset the lowered pension, or stop riding the backs of state employees without any actual, useful ideas on fixing this problem. "Fringe Benefits" makes you sound petty and jealous... please stop mouthing and offer real ideas for solutions, if you can. And taking away retirement benefits from those that work hard for most of their adult life is not a solution...
10:24,
Obviously, you are upset. Putting a cap on benefits and moving quickly to start paying off the unfunded liability are actual, useful ideas I have proposed repeatedly. The term for benefits beyond a paycheck is "fringe benefits." That's what they are called and it has nothing to do with me or what I think. And I have never suggested taking away retirement benefits from anyone. Current and retired public employees have a deal that can't be cancelled. The hard fact is that it is a deal taxpayers can't afford to keep offering to new employees. We can have a civil conversation about this if we stick to the facts.
An industry Civil Service worker covered by a Defined Benefit retirement plan working 25 years @$50,000 annually retirement would be $8,309.
A Federal worker covered by Defined Benefit retirement plan working 25 years @$50,000 annually would draw estimated $4,681.
PRIVATE SECTOR
Worker covered by defined benefit plan working 25 years @$50,000 retirement would be $2,786.
Worker covered by social security plan working 25 years @$50,000 retirement would be $1,534.
Worker covered by defined contribution working 25 years @$50,000 retirement would be $1,907.
1996-2005 Comparsion of Average Pensions
Pensions 1996 2005
Private $26,582 $40,505
State $31,397 $42,249
Local $28,320 $37,718
Federal $40,414 $59,864
Source: 2007 AFT Public Employees Compensation Survey: www.bls.gov
"Anonymous said...raising staet employee salaries to be closer to private sector workers"...which state workers? Merit or non-merit?
Statutory elected non-merit employees?
If you're talking about statutory elected non-merit state employees you're talking about 120 Ky tax assesors whose non-merit salaries average $61,910, annually.
There are 12,500 non-merit state employees whose non-merit salaries average $100,000 annually; i.e., Superintendents avg. salaries.
There are estimated 33,215 merit salaries avearaging $30,000 more or less annually.
How about all those Constitutional courthouse employees being paid overly generous salaries paid for by taxpayers?
They start out at minimum of $44,000 annually plus perks like non-merit state workers.
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