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The Age of $100K per year tax-free pensions

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While you are calculating your retirement benefits you might want to do a little benchmarking.  The great thing about public pensions of city and state workers is that there is a near infinite amount of money to fund these pensions.  That infinite amount of money is the state, city, and local taxing authority.  Whatever is needed to fund these pensions it can get from the citizens.  Good deal.

Check out this excerpt from the New York Times…  And then check out the actual annual pensions amounts of 3,726 individuals collecting public pensions from the state of New York

In Yonkers, more than 100 retired police officers and firefighters are collecting pensions greater than their pay when they were working. One of the youngest, Hugo Tassone, retired at 44 with a base pay of about $74,000 a year. His pension is now $101,333 a year…

It’s what the system promised, said Mr. Tassone, now 47, adding that he did nothing wrong by adding lots of overtime to his base pay shortly before retiring. “I don’t understand how the working guy that held up their end of the bargain became the problem,” he said…

According to pension data collected by The New York Times from the city and state, about 3,700 retired public workers in New York are now getting pensions of more than $100,000 a year, exempt from state and local taxes. The data belie official reports that the average state pension is a modest $18,000, or $38,000 for retired police officers and firefighters. (The average is low, in part, because it includes people who worked in government only part time, or just a few years, as well as surviving spouses getting partial benefits.) …

Roughly one of every 250 retired public workers in New York is collecting a six-figure pension, and that group is expected to grow rapidly in coming years, based on the number of highly paid people in the pipeline…

Yonkers still offers full pensions to police after 20 years, but just in theory. For the moment, the city is too broke to send any new cadets to the police academy, and retirees are not being replaced…

Resources:

Check out the Top Recipients of Public Pensions in New York
Records for 3,726 individuals
http://www.nytimes.com/interactive/2010/05/15/business/pension.html

Read the whole story
http://www.nytimes.com/2010/05/21/business/economy/21pension.html

Read about the scandal in Bell California
The city manager of a blue-collar town makes $700,000/yr and will draw a pension valued at $30 million over his lifetime
http://abcnews.go.com/WN/pressure-calif-city-mulls-firing-overpaid-manager/story?id=11230145

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Written by frrl

December 23, 2010 at 8:28 pm

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