Reply to Fairfax county contribute 27.14% towards employee

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Those are pension contributions based on the costs they're paying out, not contributions to individual employees' retirement funds. The way to stop it is to get rid of pensions, but then you'd have to up public sector salaries to compensate since pensions and other benefits are part of why people take those jobs for less. And that doesn't solve the problem of paying out existing pension obligations for past employees--you'd need a tax or some other way to fund that.[/quote]
They can chose to terminate the plan. Existing retirees would be offered an annuity or a lump sum payment. I haven’t looked into all of the public information on Fairfax’s pension but most plans nowhere near fund the full obligation every year so there would be a large payment due in order to terminate the plan as it has to be fully funded at termination.

[b]But plan termination won’t happen. All of the counties close to Fairfax would essentially has to agree to do the same thing in order to prevent an exodus to other jurisdictions. 
[/b][/quote]

This, basically. Everyone has to do it, and then you have to make sure salaries are comparable to private sector or you'll get an exodus that direction for those employees who can move that way. It's not clear that it's necessarily a net gain to taxpayers if the end goal is to continue to provide the same services. (Now, you can just decide to cut there instead and reduce your staffing, which will in turn reduce your future pension obligations. So there's that option too.) If there were easy solutions, they would have been put into place already. Even the private sector corporations who no longer offer pensions are still paying them for existing retirees out of their bottom lines (Sears pensions are reportedly even going to survive bankruptcy!) [/quote]

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