Gov. Christie explains on Fox the absurdity of State pension programs

[Cowlesy]

http://video.foxnews.com/v/4148114/part-2-chris-christie-on-fnc?playlist_id=86858

Gov. Christie's example is a 49 year old worker, who's worked for 25 years and paid in $124,000 over his lifetime into their pension plan. The worker will receive (an there is some actuarial stuff involved here) $3,300,000 in pension benefits, and $500,000 in healthcare benefits, for a total of $3,800,000.

$124,000 for $3,800,000.

If you took $4,960 ($124,000/25) and invested it each year for 25 years, you would need an approximately 21.7% compound annual growth rate to cover the $3,800,000.

L.O.L.

And we wonder why all the States are practically broke.

By the way, if that dough grew at an 8% CAGR, you'd have $396,928 after 25 years.

[TinCanToNA]

But socialism provides free lunches for all the workers, no? These numbers you throw out, they're dangerous thinking Comrade!

[MelissaWV]

http://video.foxnews.com/v/4148114/part-2-chris-christie-on-fnc?playlist_id=86858

Gov. Christie's example is a 49 year old worker, who's worked for 25 years and paid in $124,000 over his lifetime into their pension plan. The worker will receive (an there is some actuarial stuff involved here) $3,300,000 in pension benefits, and $500,000 in healthcare benefits, for a total of $3,800,000.

$124,000 for $3,800,000.

If you took $4,960 ($124,000/25) and invested it each year for 25 years, you would need an approximately 21.7% compound annual growth rate to cover the $3,800,000.

L.O.L.

And we wonder why all the States are practically broke.

By the way, if that dough grew at an 8% CAGR, you'd have $396,928 after 25 years.

Don't forget STD/LTD, Life Insurance, Vision/Dental...

[foofighter20x]

Same problem here in Oregon.

[AuH20]

The judges will not dare touch the pensions:

http://www.nj.com/news/index.ssf/2010/04/memo_by_nj_supreme_court_justi.html

[specsaregood]

I had my doubts about Christie, but voted for him because he wasn't Corzine. But so far he sure is making the right enemies.......You know when the NJ unions start praying for you to die, you are doing something right.

[RM918]

I had my doubts about Christie, but voted for him because he wasn't Corzine. But so far he sure is making the right enemies.......You know when the NJ unions start praying for you to die, you are doing something right.

Yes, if anything, it was worth it to finally see the teachers unions go nuts. They're really saturating the airwaves around here, though.

[specsaregood]

Yes, if anything, it was worth it to finally see the teachers unions go nuts. They're really saturating the airwaves around here, though.

Indeed, and the fact that they are going nuts over a PAY FREEZE and not even a pay reduction shows how delusional they are. I think he should start asking for decreases in response.

[foofighter20x]

The judges will not dare touch the pensions:

http://www.nj.com/news/index.ssf/2010/04/memo_by_nj_supreme_court_justi.html

Hahaha. Same problem here in Oregon.

[AuH20]

The unions will be forced to cull their future members, or renegotiate. Christie can eventually pare down the rolls to a skeleton crew and simply lay the blame at the union's feet, even if that's not completely the truth. With that said, the Unions deserve a comeuppance for being extraordinarily greedy.

[TonySutton]

Do public employees in NJ retire at 25 years or is this police/fire workers?

[Brian4Liberty]

Yes, if anything, it was worth it to finally see the teachers unions go nuts. They're really saturating the airwaves around here, though.

It's funny, because only very minor changes are being discussed. States can't declare bankruptcy, but something like that will eventually happen...the unions are too stubborn to be reasonable.

[Cowlesy]

Do public employees in NJ retire at 25 years or is this police/fire workers?

he didn't say in the interview

[TonySutton]

he didn't say in the interview

I was curious because in this case his point is valid but a bit misleading because many people believe retirement age is 62 or 65 but when you are talking about police, I think the compulsory age for most is 55 and many will retire with 25 years before they reach 55. I am pretty sure it is similar for fire fighters.

The reality is this is a burden many do not look at. Back when the federal government was paying to get more police on the street, well it sounds good.(to some) Unfortunately 20-25 years later someone has to pay that pension.

Sounds like a good case for privatization.

[surf]

i ran for state treasurer a few years back and my biggest issue was working to privatize the pension fund. this was when the stock market was booming so it was an easier sell to folks. the republican was a libertarian accountant and i have capital markets experience so it was fun debating the incumbent D (often times the only reason i was there was because the republican requested it.) we'd bash him for investing public money (guaranteed tuition funds) in private equity because this was unconstitutional in our state.

had she or i been elected the state would have about half it's current unfunded liabilities.

[Cowlesy]

I was curious because in this case his point is valid but a bit misleading because many people believe retirement age is 62 or 65 but when you are talking about police, I think the compulsory age for most is 55 and many will retire with 25 years before they reach 55. I am pretty sure it is similar for fire fighters.

The reality is this is a burden many do not look at. Back when the federal government was paying to get more police on the street, well it sounds good.(to some) Unfortunately 20-25 years later someone has to pay that pension.

Sounds like a good case for privatization.

Hard to say because I have friends whose relatives are teachers and love to brag about retiring at 51/52 with full pensions.

[Cowlesy]

Manhattan Institute wrote a huge report on Teacher's pension systems.

http://www.manhattan-institute.org/html/cr_61.htm

Haven't read it yet, but MI always has great analysis on items like this.

[wizardwatson]

It's funny, because only very minor changes are being discussed. States can't declare bankruptcy, but something like that will eventually happen...the unions are too stubborn to be reasonable.

This is why, in my opinion, inflating the currency usually ends up being the way an empire dies. It's the only option that the government is left with when it must act, but it can't cut spending and it can't increase taxes. The correction in the economy gets so heated and rigid that both directions, cutting spending/increase taxes, point to revolution.