Pension Liars and GOP Myths

So, what are we going to do about those big "fat pensions" collected by public employees?
You know, those retirement benefits that supposedly are threatening to bankrupt state and local governments everywhere. What to do? That's easy. We can make that problem disappear quickly – just like that! We need only realize that the problem simply does not exist, despite the claims by rabid anti-union forces and the many people who they've duped. Here's the basic situation: Anti-union forces are attempting to weaken the public employee defined pension plans that provide employees a specific monthly payment on retirement. The plans cover about five million older Americans, providing money that many drawing benefits very much need to escape poverty and stay off government assistance.

Those receiving the benefits, many at rates granted originally in lieu of pay raises, in turn create more than $358 billion in economic output nationwide and create more than 2.5 million jobs. State spending on pensions amounts to no more than 4 percent of the state budget, on average. In most states, employees must contribute up to 8 percent of their wages to their pension fund, a bit more than private employees contribute toward their pensions. You should also know that, despite what you may have heard, government pension funds are not going broke. They in fact have been growing as Wall Street has been doing better. Those basic facts and others that are often lost amid the anti-pension clamor from those on the political right who would just as soon do away entirely with pensions. But they were laid out clearly by panelists in a forum earlier this year sponsored by the National Public Pension Coalition.

Panelist Dean Baker, an economist who is co-director of the Center for Economic and Policy Research (CEPR), noted the concern that pensions are endangering government services stems from "a crisis that has been invented" by employer groups. Baker said the make-believe crisis stems largely from the 2008-09 market crash. That caused an estimated $800 billion of the $1 trillion shortfall in pension plans, but he said the plans should be able to recoup their losses. But what of the public employees supposedly drawing pensions of $100,000 a year, or even more? As panelists pointed out, they're pretty much make-believe, too. Then how much do they make? In New York, as another panelist, New York State Controller Thomas DiNapoli reported, the average pension, including those of police and firefighters, is just a little over $19,000 a year.

Three-quarters of New York's pensioners overall get less than $30,000 a year, and less than one-half of 1 percent get more than $100,000.

Panel member Janet Cowell, North Carolina's state treasurer, said the average pension in her state is a mere $22,000 a year. She said fewer than 300 retirees get $100,000-plus pensions – "and some of those are basketball coaches."

Rhode Island retiree Dolores Bresette, a voice from the trenches, as it were, told her unfortunately not uncommon story to the panel. She said "I worked for the State of Rhode Island for 37 years and contributed 9 percent of my salary to my pension fund. Now, after years of saving and preparing for my retirement, so much of what I and thousands of other public workers were promised is being taken away." That's because of last November's enactment of a "Retirement Security Act" which, among other things, suspended cost-of-living adjustments for Rhode Island retirees indefinitely."

There are real human implications of the current efforts to dismantle public workers' pension funds", Bresette declared, "and people in Washington and the country need to see that." She and other panelists warned that "in addition to the human implications there are serious social and economic consequences that will develop over the long term if the shift away from defined-benefit pensions continues. Instead of dismantling public employee retirement systems, policymakers should be working to improve retirement security for the private sector workforce.

Edited: for complete article, please go to www.dickmeister.com

(1)http://www.sfbg.com/bruce/2012/03/23/meister-its-not-true-what-they-say-about-pensions By Dick Meister, former labor editor of the SF Chronicle and KQED-TV Newsroom Contact him through his website, www.dickmeister.com, which includes more than 350 of his columns.

Portugal General Strike, Spain, Italy Next

Anti-Austerity Mass General Strike Takes Portugal, Spain and Italy are Next

Today in Portugal public services and transportation came to a halt, as unions enacted a 24-hour general strike for the second time in two months. The metros in Portugal's largest cities have closed as well as major ports. The strike was called in reaction to austerity measures agreed upon by the government in return for a European bailout. A picket at Sao Bento station in Porto. The bib reads "General Strike." (Jose Coelho/EPA) Demonstrations and rallies are planned for the afternoon in 38 cities and towns across the country. Today's events preclude similar strikes in both Italy and Spain among countries facing European austerity.

Spain's two main unions, the General Workers Union and the Workers Commissions, have called for a general strike on Marc h 29 to protest the government's austerity pus. Italy's largest trade union called for a general strike over labor reforms on Wednesday, in protest of Prime Minister Mario Monti and Italy's austerity. Common dreams staff

* * *Portugal Hit by General Strike Against Austerity (Agence France-Presse): Lisbon, protestors linking actions to other demonstrations around the globe (Photo: Jose Manuel Ribeiro/Reuters) Garbage went uncollected, ports closed, trains stood still, public transportation was disrupted and other public services were affected by the country's second general strike in four months. The metros in Lisbon and Oporto, Portugal's second-largest city, were closed because of the strike, forcing tens of thousands of commuters to find an alternative way to get to work or school. The majority of ports, including the port of Lisbon and Viana do Castelo in the north, were closed, according to the country's biggest union -- the General Confederation of Portuguese Workers (CGTP) -- which called the strike. About two dozen ships were forced to change their routes to go to other ports because of the action, it added. [...]The CGTP, which is close to the Communist Party, called the strike in February to protest against a reform of the labor code that makes it easier to hire and fire workers. It is also angry over government austerity measures such as the elimination of public employees' Christmas and vacation bonuses -- each roughly equivalent to a month's pay.

Italian Union Calls Strike Over Monti's Job Reforms (Reuters): Italy's largest trade union called for a general strike over labor reforms on Wednesday, escalating a confrontation with Prime Minister Mario Monti that will test his resolve to push ahead with plans to transform the economy. After weeks of negotiation, Monti announced late on Tuesday that the time for talking was over and he would press on with plans to overhaul employment protection laws dating back to the 1970s, despite stiff opposition from the left-wing CGIL union. The CGIL proposed an eight-hour general strike to protest the measures, which would allow companies to lay off individual employees for disciplinary or business reasons, saying the changes risked causing massive job losses." This will not be a flare-up which burns out in a day as the government expects and we have a duty to get results before we see years of mass dismissals from companies," the union's secretariat said in a statement. The strike would mark the biggest demonstration against technocrat premier Monti, a former European Commissioner who has already imposed painful cuts and tax hikes and an overhaul of the pension system since taking office in November.