Tuesday, April 26, 2011

Indiana's Unfunded Public Pensions Getting Worse








Cato said...

It doesn't matter. The dollar is falling to its proper value, and we're monetizing the debt, so we'll be able to pay off 2000 benefits with very cheap 2030 dollars. The pensioners' standard of living will be crushed because of inflation, but we'll be able to make the nominal payments.

Without a COLA built into the pension plans, the money managers don't have to worry too much. It gets cheaper to repay a 1991 benefit dollar, every year.

If a COLA is built in, default is inevitable, because the benefits were over-promised, and the economy of the state will never be so robust to deliver on those promises. Further, the state's economy will not support being confiscated to the extent required to pay off bloated police pensions.

The way out, right now, is to cancel all police pensions and put the cops on 401k plans.

The FOP will say "Promises were made, and the state has an obligation to keep its promises." The General Assembly needs to have the courage to say "Things change."

Bob said...

It's way past time to put much of the blame for the public pension problem on the elected officials who have underfunded it for years rather than the public employees (you know... the "union thug" teachers.)

It's been amazing how effective the the legislature has been at blaming the victim and keeping the attention off of them.

SW Lane said...

It figures that Cato would focus in on the cops and not anyone else who is on a state pension...and there are a Hell of a lot more of them than cops.

What happened Cato? Did you once apply to the local PD and get rejected for some reason?

Substitute the words "Blacks" or "Gays" and your prejudice would be as disgusting. There's no difference really..you judge the acts of all based on a few.

Had Enough Indy? said...

The State needs to spend their extra cash to fully fund these pensions and not cut taxes, as Governor Daniels prefers.

Cato said...

"What happened Cato? Did you once apply to the local PD and get rejected for some reason?"

Do you think so poorly of me that you conjure that I'd make such an application? What a shallow brain you possess.

No, Had Enough, the pensions are excessive. Cut taxes, and default on any portion of the pension that is not a salary set-aside. Return to the people what they paid, perhaps with a nominal amount of interest, but no more.


Cato is right once again.

SW Lane said...


What an enormous ego you possess. I don't think so much about you at all, except for when I see these rants about the police all the time. While all cops should be accountable, not all possess the negatives you constantly apply to all of them. Sad on your part. I'll be embarrassed for you.

TMLutas said...

Cato - It's not that things change, but rather did the negotiators ever work out a sustainable way to pay for the pensions that were promised and was the public ever informed?

If it makes it clearer, the ousted mayor of Bell, CA set up the clearest case of improper pensions I've ever seen: http://www.google.com/hostednews/ap/article/ALeqM5i_5jhSE4-DW_MU3RsKKcoCAVrwlA?docId=5ae774f9c7f4440bb0630eb3a73c3558

Nobody else knew about it and the new government is looking to claw back the funds. If labor reps and politicians in Indiana conspired to enrich the former and secure re-election for the latter by the same sort of underhanded tactics they deserve no less than the pirates in Bell, California.