One of the biggest unreported, blockbuster stories in modern America is the alliance between public sector unions and the speculative banking industry. It is a story saturated in greed, drowning in delusion, smothered and marginalized by an avalanche of propaganda – paid for by taxpayers who fund both the public sector unions and the public employee pension funds.

The problem with public sector defined benefit pensions can be boiled down to two cold factors: They are too generous, and they rely on rate-of-return assumptions that are too optimistic. The first is the result of greed, the second of delusion. To indulge these vices requires corruption, and it is a rot that joins public sector unions with the most questionable elements of that Wall Street machine they so readily demonize.

If you honestly review the numbers, the greed is obvious. The average pension for a public servant who has worked 30 years or more in public service is more thanfour timeswhat the average social security benefit is for someone who has worked 40 years or more in the private sector. To cite… Read More

Most fire fighters do not get Social Security, so they completely count on the pensions they have contributed to, been promised and earned over a career. Take their pensions away or cut their pensions and you have fire fighters who risked their lives over a career to save others living in destitution, on public assistance, meaning the taxpayers have to foot that bill, too.

– Harold A. Schaitberger,President of the International Association of Fire Fighters, Press Release Sept. 26, 2013

The implication in Mr. Schaitberger’s remark, apparently, is that $234,000 per year isn’t enough to permit someone to save enough money to avoid “living in destitution.”

Here’s how Orange County’s full-time firefighters did in 2011, according to data from their own website (ref.OCFA Employee Compensation,2011 – Grand Jury Format). Anyone who wishes to verify all of the calculations referenced in this post can… Read More

“Just as the overseer of Detroit lied to the public about Detroit’s unfunded pension liability, these extremists are likewise lying to the taxpayers of Orange County, and they’re following his playbook.” – Jennifer Muir, Communications Director, Orange County Employees Association

We’re not lying, Jennifer. We’re not even stretching the truth.

What government union spokesperson Muir is referring to is an analysis released last week by the California Public Policy Center entitled “Are Annual Contributions Into Orange County’s Employee Pension Plan Adequate?”

They aren’t adequate. They aren’t even close to adequate. No lie.

The problem with pensions, unfortunately, as Teri Sforza aptly put it in her coverage of the CPPC study on September 10th in the Orange County Register, is“the nature of America’s public pension systems is to peer 20 to 30 years into the future – and the crystal ball can get a bit… Read More