The Motley Fool Discussion Boards
Retirement Discussions / Retire Well on Less
|Subject: Re: Retirement in danger||Date: 10/27/2008 3:56 PM|
|Author: telegraph||Number: 1314 of 1756|
"You never say never, but I think it extremely unlikely that existing and already accrued pension benefits can or will be cut. As I mentioned I do believe they can "freeze" the pension or give less credit for *future* years of service... or they can stop putting new hires into it... but I really, really think any attempt to cut earned pension benefits, based on years of service already worked, would be DOA."
Some cities decide what the 'percentage' which is earned by years of service is,...the figure out the last 3 'average earnings'....which in many union based jobs, suddenly winds up being 100% greater than the base salary of the employee...all of a sudden,there is 40 hours a week of overtime.....and premium pay, of course..... for a year .......(put in by others)....to help the guy retiring get a pension based upon a bogus number.....next year they help out someone else with 'extra hours'....maybe the employee works 20 extra hours, some others kick in a hour or two of their overtime....(for cash under the table)...
and the guy retires with 35years or 35% of twice or three times his base pay....... or about 100% of pay.......
The NYC unions were famous for that.....
Suddenly, the last 3 years had fantastic earnings...the guy about to retire 'got all the overtime'..... heck...the next year, he might even appear to help out the next guy retiring...for a few bucks off the books...to 'work' over time for 2-3 hours in place of the nest guy to retire.....
I wouldn't be surprised if the transit folks and others weren't pulling the same scam.
You limit it to base pay and save a bundle....but you got a big fight with the unions....
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|