Pensions in the public sector are out of control:
Number | Average Pay | Total Pay | |
Federal Civilian Retirees * | 2,600,000 | $40,000 | $104,000,000,000 |
Federal Military Retirees * | 2,100,000 | $45,000 | $94,500,000,000 |
State and Local Government Retirees * | 20,000,000 | $30,000 | $600,000,000,000 |
Total | 24,700,000 | $798,500,000,000 |
* Retirees include survivors and beneficiaries.
As this table shows, we spend close to $1 trillion on pensions for government workers. In fact, it’s probably over $1 trillion because many retirees also get Social Security.
Many of these retirees get 100% of their income when they retire. This is because that’s the way it’s set up, and because many government workers manipulate the system. Is it any wonder that pension funds like the Dallas Police & Firefighters Pension is in trouble? And retirees in some California cities are facing a 60% cut in their retirement checks.
Most companies no longer have pension plans. If you work in the private sector and retire, you get nothing (0% of your income). It’s up to the employee to manage his own 401-K accounts to provide for his retirement, along with Social Security. Why should the public sector be any different, especially since it’s paid for by our tax dollars?