Thursday, March 24, 2011

I didn't know NH was in this bad a shape

Here is a listing of degree of funding of public pension plans. NH is near the bottom. Degree of funding is a measure of how much money is in the pension fund compared to the money owed to pensioners. When the pension fund runs dry, the retirees scream and cry for us taxpayers to put more money in the fund so that they get their retirement checks on time. And in full.
Looking at where we are, those pension talks going in in Concord need to be driven to a successful conclusion. We taxpayers ought to insist on a few things.
1. No checks for anyone under the age of 65. It's fine to retire early, but don't expect us taxpayers to fund you. You don't get checks until you reach 65.
2. No spiking. Pension is based upon base pay only. Overtime, sickpay, accrued vacation and other pay does not count. In many states, and perhaps in NH, pension is based on total pay in the last year before retirement. Employees cash in all their accrued vacation time, unpaid sick pay, and work a lot of overtime. This can boost their pensions by up to 50%.
3. Nobody gets a pension larger than 50% of their regular base pay.
4. You gotta work 20 years or more to be eligible for a state pension.
5. No double dipping. If you are eligible for a pension from one state agency, and go to work for another state agency, you don't get two pensions.

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