Thread: The $100,000 Club

It has begun, the downgrading of the middle class continues at brake neck speed.
I won't have to worry about them reducing my retirement because it's over $100,000.

Some local police and fire departments, in states like California, Florida, and New Jersey, have very generous pensions. Often they are linked to an average of their high three. And most departments have more overtime available than they know what to do with. It's not uncommon for folks within a few years of retirement all of sudden become zealots for duty and work every possible extra shift they can get their hands on. Why you ask? Because all that overtime income counted towards their salary for that year, which got figured into their high three calculation. So an officer who normally made $60K - $75K might be able to pull in $150K - $200K, or even more. The pension, which might pay out 75% of their high three average, now has them making more money in retirement than they did on the job. Couple that with the fact that most police officers and firefighters retire relatively early compared to other professions, and that pension becomes a huge liability over a longer period.

At some point a lot of these local jurisdictions, and even states, are going to be overwhelmed.

Pension Bills to Surge Nationwide

Many States and Cities Face Hard Choices Because of Market Declines

By CRAIG KARMIN
The Wall Street Journal
March 16, 2009

Many state and city governments reeling from financial woes are about to get whacked again, this time by an unforeseen increase in their pension bill thanks to market declines.

In an effort to stave off tax increases, New Jersey lawmakers on Monday will consider a bill that would allow municipalities to defer payment of half their annual pension bill, due April 1, for one year.

Those towns, counties and schools that opt to defer would face a higher pension bill for years to come.......

http://online.wsj.com/article/SB123716064273635495.html

http://www.pensiontsunami.com/

That approaching wave of pension debt is bigger than it looks. The purpose of this site is to provide an overview of the multiple pension crises that are about to drown America's taxpayers.

Been talked about in my state for a number of years now already-state retiree pensions. Also been talked about in a neighboring state, I get news from both states, being borderline and all.