A 30-year employee who retires at 55 with an unreduced pension — and who joined the $100,000 club at 50 — is guaranteed at least $60,000 per year (indexed, and not including any medical and dental benefits).
If that person lives to 75, that’s more than $1.2 million in pension.
“How’s this going to be funded?” Mark asks.
While it’s true the pensions are paid out from separate funds, the fact is those funds aren’t subject to the same vagaries of the market as private pensions.
So the burden of those massive pensions shifts to the taxpayer.