Jim Bernstein states: "Pensions are earned. They are not welfare."
Vicky replies: We need some arithmetic here. If you contribute $50,000 to your retirement plan, and draw $500,000 of benefits after you retire, who pays the difference? In the case of public pensions (including social security), the taxpayers pay - as long as they are willing and able to do so. Some call it welfare, but I call it a Ponzi scheme that is destined to fail. The only way for it to work would be to find millions and millions of new taxpayers who are willing to support those who preceded them. Keep in mind the boomer population bulge (pun intended.) Minneapolis specific: How much is a former City Council person expecting to receive? At what age? I remember reading that he or she can expect a monthly income equal to 75% of his or her highest salary. Who knows what they include as "salary" for the calculation, but let's assume $60,000 per year. If these numbers are correct, a former Council Member would receive $45,000 per year, plus first class healthcare for 10, 20, 30 years. That kind of annuity is worth a lot -- in the millions. How much did he or she pay for the annuity? Not much. It would be nice if someone from the City would give us the correct numbers so that we can do these calculations accurately. We must stop pretending that money comes from Heaven. All of It comes from someone else's pocket. Vicky Heller North Oaks REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
