I cannot ever remember company pension increases for retirees like the 3 percent annually compounded received in the public sector occurring in my industry. A lot of companies have frozen pensions and converted defined benefit plans to defined contribution plans. They have also frozen company contributions to Medical care.
We both agree that there is little danger of public sector jobs going to China, but change is coming because the customer in this case (taxpayer) cannot afford the continuous cost increases just like the customer could not afford the cost of General Motors to make cars and General Motors to be profitable enough to stay in business. They had to change.
Below is a short blurb telling us how to solve the pension crisis from another colleague. We may not agree totally with him, but the comments are just his thoughts in an attempt to correct what my friend has termed “truly unbelievable."
“BTW – compare Social Security and Medicare benefits of those in the private sector to the Federal, State, Municipal and newer retirees in education (the classic stunt of adding benefit eligible compensation in the last couple years or so of service to increase the lifetime income and free health care through retirement).
These groups with the politicians (and unlimited union support) have 'gamed the system' and we are the 'patsies' who are on the hook for egregious lifetime benefits for those self dealing Public Servants.
"We should demand that retirement eligible dates are equal with social security dates, cost of living increases equal with social security cost of living increases and overnight the pension crisis would end and let them know the current maximum social security payment in 2012 was approximately $2750.00 per month regardless of the amount contributed ….
"What is the mayor of Chicago’s greatest line…'never let a crisis be wasted!!!' The current 'politico’s' do not want to fix their 'entitlement system' as they may lose their supporters!!! It has become rhetorical to them!"