perhaps eliminated, but in this case it should have been done years ago and gradually.
I don't agree with cuts in what you were promised for years AFTER you retire, or the immediate months before.
Any changes in pensions payouts should be decided and announced years before they affect anyone. And definitely not after you retire basing your decision on what you were promised as a part of your job compensation. While most of them may not be able to, if the city is going to cut a pension they retired under, they should be offered their jobs back. How is the city going to pay for that?
Once again, it's not facing the facts of the future that is the problem. No one had the will to say a decade ago we're going to cut pensions over the next few years or raise taxes now. Why, because it's political suicide because those same taxpayers that you mention paying the bill don't want to hear the truth either.
Sad for those who lose out, but reality bites. Those on the public dole must remember that in the end it's always the people aka taxpayers who must pick up the bill, or cut the cost. I'm all for the concept that if you don't have the money, you don't spend the money.
PRICHARD, Ala. - This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.
Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.
The situation in Prichard is extremely unusual - the city has sought bankruptcy protection twice - but it proves that the unthinkable can, in fact, sometimes happen. And it stands as a warning to cities like Philadelphia and states like Illinois, whose pension funds are under great strain: if nothing changes, the money eventually does run out, and when that happens, misery and turmoil follow.
It is not just the pensioners who suffer when a pension fund runs dry. If a city tried to follow the law and pay its pensioners with money from its annual operating budget, it would probably have to adopt large tax increases, or make huge service cuts, to come up with the money. (more...)