SC retiree cost-of-living increase cut in half

Thursday, Nov. 3, 2011 1:20 PM
Last updated 6:55 PM
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COLUMBIA— South Carolina’s financial oversight board has voted to cut in half cost-of-living increases for state retirees, to 1 percent.

That could cost the typical retiree about $180 a year.

The Budget and Control Board agreed Thursday to reduce the state’s expectation of how much it would earn on investments. Under the old assumption retirees got a 2 percent increase. The lowered expectation cuts that to 1 percent.

The board also agreed to increase the amount that employers contribute to the retirement system by nearly 1 percent.

The changes come as state legislators scramble to find a way deal with long-term shortfalls in the retirement system.

Without changes, the state would not be able to cover a $17 billion gap between cash and promised benefits for as long as 60 years.

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Chillen
17
Points
Chillen 11/03/11 - 02:19 pm
0
0
Get used to the new normal.

Get used to the new normal. Declining wages, minimal if any COLA's amid rising prices - Inflation. These governments (state & federal) are a total disaster.

The pension ponzi scheme doesn't work. For every one state retiree, you need 9 workers to fund the retiree's pension. When those 9 retire, it takes 81 workers to fund their pensions. When those 81 retire, it takes 729 workers to fund theirs. For those 729 you need 6,561 workers. For the 6561 to retire, you need 59,049 workers. You get the picture.....

Why do you think that the governments have been hiring more & more people each & every year? Why do you think the unions are scrambling to find more & more union members? They do it to pay for the pension commitments of retirees! That's why. Well, that and the power.

Question is. How many govt workers and union workers can we sustain? When we reach a point where the govt cannot hire more new folks, what happens to the retirement guarantees?

The pension model DOESN'T WORK. It's a socialist ponzi scheme and it is doomed to failure. Just ask Greece, Italy, Spain and the rest of Europe.

KSL
135583
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KSL 11/03/11 - 02:27 pm
0
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I am so sorry. Life is tough.

I am so sorry. Life is tough. My husband lost his first job out of college because of the influx of returning Viet Nam vets. We had just bought our first house and had a baby. He got 2 weeks of severance pay and 2 weeks of unused vacation pay. Yep, 2 weeks in 1971. Oh, by the way, our generous Feds made the company withhold on that one check as if he was making that amount every pay period. So right when we might have needed the extra money, they were extracting "their fair share." Fortunately he was intelligent enough, educated enough, etc, that we didn't miss a beat. He has never been without work. No food stamps or unemployment checks for our family.

Make no mistake. Our Founding Fathers mistrusted a strong central government for good reason.

CobaltGeorge
165882
Points
CobaltGeorge 11/03/11 - 02:30 pm
0
0
KSL...."Our Founding Fathers"

KSL...."Our Founding Fathers" The first question asked by today's administration will be ....who in heck is Our Founding Fathers?

KSL
135583
Points
KSL 11/03/11 - 02:31 pm
0
0
By the way. He had tried to

By the way. He had tried to be one of those vets, but had been turned down for miniscule medical reasons, much to his dislike.

KSL
135583
Points
KSL 11/03/11 - 02:33 pm
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CG, no doubt they have no

CG, no doubt they have no knowledge of them or what they were all about!

CobaltGeorge
165882
Points
CobaltGeorge 11/03/11 - 02:34 pm
0
0
KSL, By knowing him, I know

KSL, By knowing him, I know he would have been one good Military Officer.

KSL
135583
Points
KSL 11/03/11 - 02:51 pm
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Thank you, CG. Small birth

Thank you, CG. Small birth defect in his heart detected when he was young. He was attempting to go Naval ROTC at Tech. Was there for 2 weeks when they dismissed him because of a letter sent to them. Ironically, that little heart defect was not detected for 3 decades. Turned out to be not only a valve problem, but a hole between the upper 2 chambers of his heart. Some very wonderful surgeons at MCG fixed him right up. 3 days and he was back to working. And we are talking cut your chest open and cut your heart open surgery.

He was standing up in the hospital on the Friday after his surgery on Tuesday reviewing plans when the doctor came in to dismiss him.

I guess that pretty wells sums up our work ethic.

bjphysics
36
Points
bjphysics 11/03/11 - 02:50 pm
0
0
Chillen: “It's a socialist

Chillen: “It's a socialist ponzi scheme and it is doomed to failure. Just ask Greece, Italy, Spain and the rest of Europe.”

But don’t ask Switzerland because that's not how they do it:

“Company pension funds

Company pension funds are the base of the occupational benefit plan (Berufliche Vorsorge/Prévoyance Professionelle), which is the second pillar of the Swiss pension system and was introduced in 1985. This pillar is intended to provide pensioners with the means to lead a comfortable life. Ideally, AHV and the Company Pension Fund combined should correspond to 60% of the last salary before retiring.
Instead of relying on a pay-as-you-go system, Company Pension Funds are based on a system of capital cover. Thus, rather than redistributing contributions from workers to pensioners, each worker pays contributions towards his personal pension fund. All employees with an annual income between CHF 20,520 and CHF 82,080 are obliged to pay contributions to the scheme. Total contributions increase with age and amount to 7–18% of gross salary.”

http://www.swissstyle.com/swiss-pensions

Ushouldnthave
0
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Ushouldnthave 11/03/11 - 03:10 pm
0
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Chillen, you're partially

Chillen, you're partially right which is why the State of Georgia has gone to a retirement which is almost entirely based on 401k's with a small match and a minimal pension. Where you're wrong is that new employees don't pay for gov't retirement plans, the taxpayer does. You could fire every gov't employee today and retirees pensions are (and should be) guaranteed.

KSL
135583
Points
KSL 11/03/11 - 03:32 pm
0
0
Now talk about the strong

Now talk about the strong central government in Switzerland. Also remind me about their gun control laws.

Chillen
17
Points
Chillen 11/03/11 - 03:40 pm
0
0
Union pensions do work the

Union pensions do work the way I described. And most govt employees are union members. Think teachers, firefighters, police, SCIU members, etc.

And by the way, I do think they deserve to be paid, they were promised the money. But, we must reform for the future - as another poster pointed out Georgia did.

Chillen
17
Points
Chillen 11/03/11 - 03:37 pm
0
0
Switzerland. Now there's a

Switzerland. Now there's a sitting duck. Their banks are about to hit difficult times because of their cooperation with the obama administration. Why would anyone bother to deposit money there anymore when they just roll over on you and give out confidential information?

KSL
135583
Points
KSL 11/03/11 - 04:02 pm
0
0
When my husband worked for a

When my husband worked for a government entity he had ss withheld. But he was also coverend by the gov. plan. They put in money to the extent of 20%, not of his salary but 20% of their contribution level for 5 years. After 5 years it started to vest over to him 20% a year. Of course that money was imputed income. So when he left after only 4 years, he got nothing. Oh, it was going to vest over to him over a 5 year period after he had been there 5 years.

Now here is our wonderful Federal government and its rules at work. He left in the middle of the year. Lost any claims on a retirement plan, but because he had been under one he lost the right to contribute to an IRA that year.

ASK YOURSELVS. DOES THE FEDERAL GOVERNMENT REALLY WANT US TO NOT BE DEPENDENT ON THEM?

shrimp for breakfast
5476
Points
shrimp for breakfast 11/03/11 - 05:12 pm
0
0
I believe SC's elected

I believe SC's elected officials should take a pay cut of at least 5%.
HAHAHAHA!!!! Like they would ever do that. Now they just might give themselves a raise though!

gromit
0
Points
gromit 11/03/11 - 08:09 pm
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0
Chillen is dead wrong.

Chillen is dead wrong. Actuaries calculate pensions based on mortality tables and life-time contributions. Go ask an actuary and take a course in math. Pensions are the best form of retirement savings -- because they are real money. How's that 401-K working out for ya? I wish my company still offered pensions. It's a travesty.

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