Why can't teachers/cops live with 401(k)'s instead of pensions?

[JohnnyD]

Originally Posted by Jim in CT

Also, here in CT, teachers don't participate in Social Security, which is a huge benefit. I wish I could have my social security taxes given back to me, because as it is, I pay into social security, and I don't expect to get much back (I'm 41 years old). That alone is a huge, huge benefit.

...

As for the contracts...you will see some governmengts (towns or states) file bankruptcy in the next couple of years, which gives them legal recourse to re-negotiate the contracts.

With regards to SS tax, the teachers in my area pay into a separate fund with a rate that (if I remember correctly, probably am not though) equals the SS tax rate.

Concerning the town contracts, it is only a matter of time before towns realize firing everyone and subcontracting all of it to private entities is the best course of action.
Maywood, California Fires All Town Employees, Outsources Everything: An Act Of 'Municipal Genius'?

Mansfield for example has two full time public works employees that spend half their day watching soap operas and playing cards. I know because a kid I graduated with landed one of the jobs making good money, earning towards his pension, good beni's... great for him, terrible for the rest of us. It is absolutely insane.

[Jim in CT]

Originally Posted by JohnnyD

With regards to SS tax, the teachers in my area pay into a separate fund with a rate that (if I remember correctly, probably am not though) equals the SS tax rate.

Concerning the town contracts, it is only a matter of time before towns realize firing everyone and subcontracting all of it to private entities is the best course of action.
Maywood, California Fires All Town Employees, Outsources Everything: An Act Of 'Municipal Genius'?

Mansfield for example has two full time public works employees that spend half their day watching soap operas and playing cards. I know because a kid I graduated with landed one of the jobs making good money, earning towards his pension, good beni's... great for him, terrible for the rest of us. It is absolutely insane.

"With regards to SS tax, the teachers in my area pay into a separate fund with a rate that (if I remember correctly, probably am not though) equals the SS tax rate."

Do you know what kind of return they get on those contributions? I read that baby-boomers will ee about a 1.9% average annual return on what they paid into social security, which is a lousy rate of return. My generation will pay more and receive less, so there's no way I'll break even. That teacher fund you referred to probbaly returns teachers 35% a year, guaranteed.

[Fly Rod]

We all had the opprotunity to work for the town, city state or federal, instead we chose the private sector. I was offered a job on three occasions and refused, would have started with four weeks paid vacation and credited with four years towards retirement but, I chose the private sector, had worked out great for me.

Jim
I do not know what your property is assessed for but, I'm assessed for 450,000 and pay about 4,200 in property taxes. If your property is assessed around the same maybe you should think about moving to Cape Ann, great fishing, nice beaches and only 2.5 hours to ski country.

[Jim in CT]

Originally Posted by Fly Rod

We all had the opprotunity to work for the town, city state or federal, instead we chose the private sector. I was offered a job on three occasions and refused, would have started with four weeks paid vacation and credited with four years towards retirement but, I chose the private sector, had worked out great for me.

Jim
I do not know what your property is assessed for but, I'm assessed for 450,000 and pay about 4,200 in property taxes. If your property is assessed around the same maybe you should think about moving to Cape Ann, great fishing, nice beaches and only 2.5 hours to ski country.

FlyRod, you're right, I chose not to work in the public sector. However, I don't think that means that public employees can enslave me for eternity to fund their unreasonable demands. The bottom line is, in my opinion, what public employees are receiving is way out of whack what what we should be expected to pay for. I don't want my teachers eating cat food. But I don't want to have to get a 2nd job so that they can keep insane, antiquated benefits.

My house is assessed at $450,000 as well, and my propetry taxes are just about double yours, and mine will go WAY up this year. Plus, towns in CT charge an annual "car tax" for the privilidge of owning a car. We have a 2004 Honda Accord and a 2009 Sienna minivan, and for that, I have to pay the town about $1,000 a year. CT has been very creative in finding ways to stick their fingers in our pockets, very few states have this car tax. Plus our sales tax is 6%, income tax is 5.5%.

Everyone I love lives in central CT, so I'm stuck for now. If I could convince my parents, brothers, and 5 best friends to move to New Hampshire, we'd be g-o-n-e.

[JohnnyD]

Originally Posted by Jim in CT

Do you know what kind of return they get on those contributions? I read that baby-boomers will ee about a 1.9% average annual return on what they paid into social security, which is a lousy rate of return. My generation will pay more and receive less, so there's no way I'll break even. That teacher fund you referred to probbaly returns teachers 35% a year, guaranteed.

I'll have to check. They screwed up my payment one year and paid me as an employee as opposed to a contractor so I have something like $50 sitting in the account. I'll see if I can dig up the info.

[fishpoopoo]

Originally Posted by Jim in CT

Do you know what kind of return they get on those contributions? I read that baby-boomers will ee about a 1.9% average annual return on what they paid into social security, which is a lousy rate of return. .

That's in nominal terms.

If you consider real inflation ... you're getting a negative return.