Whee!
So, there's some kind of attempt-at-legislation in Illinois going on, and I'm not even bothering to link to any of the stories because I'm tired of that hokey pokey. I don't intend to link on pension reform stories unless:
1. They are actually proposing something novel (other than changing stuff at the edges, like no DB pensions for new hires)
OR
2. Legislation actually got passed
In Illinois's case, there's nothing novel proposed, and nothing has been passed. So I'm ignoring them for now.
So let's look elsewhere. How about Ohio?
Public employees defected in droves in December ahead of reforms to the state’s biggest pension plan, though some elected officials returned to double dip.
Richland County Recorder Sarah Davis has experienced a whirlwind of activity in the past couple of months. She won reelection in November, retired on New Year’s Eve, was named interim recorder Thursday and soon is expected to be sworn in for that full term she won in the fall.
Davis said five other county recorders temporarily stepped down to avoid changes that would have damaged the value of their pensions.
….
Those OPERS members who stopped working before the New Year will avoid a change to their cost-of-living-adjustments. The adjustment gives retirees a 3 percent annual bump to maintain the buying power of their pensions. Starting this year, it will be tied to the consumer price index, the federal government’s broad-based measure of inflation, up to a maximum of 3 percent. Inflation has run at about 2 percent during the past 12 months, according to the U.S. Bureau of Labor Statistics.
That might not seem like a big difference, but if the CPI were to consistently run even just a half-percentage point shy of 3 percent, that would equal tens of thousands of dollars less over the life of the pension.
Must be nice to "retire" and keep your job. For those new to the lingo, it's called "double dipping".
In any case, I shall not be wanting for public pension stories this year and into the somewhat near future. So Happy New Year, y'all!
Chris W. on January 8, 2013 at 11:39 am said:
I was in a position to see the pre-retirement statement for an Ohio public worker (I don't remember what his job was).
The gentleman earned just under $60k per year and had been working for State of Ohio since mid 2009. His retirement draw was just over $2,000 for the rest of his life, and if I recall correctly he was under 65 when his draws kicked in.
$2 grand per month for life and all I have to do is work for the state for 3 years? Sign me up.