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DEL.ICIO.USPublic pension system needs an overhaul
The Atlanta Journal-Constitution
Outrage of the week? Try this: Former Atlanta Mayor Bill Campbell, whose administration was a cesspool of civic corruption, will collect $3,652.84 a month from the wallets of his administration’s victims while serving 30 months in federal prison.
Former City Councilman Ira Jackson suns on Hilton Head while collecting $5,124.46 per month from the public purse. This is a guy whose full-time service as aviation commissioner lasted less than three years, who was convicted of 130 counts of mail fraud, accepting bribes and tax evasion. A local businessman, Dan Paradies, was convicted of giving Jackson payoffs in excess of $1 million.
Less than three years of full-time employment — on top of 21 years as a part-time city councilman. The payoff? A public pension of $5,124.46 per month, even though the service was corrupt.
Buddy Fowlkes, who held the part-time office as city councilman for 32 years, was convicted of accepting bribes from an airport concessionaire. He now suns on Marco Island, Fla., with a city pension of $1,675.86 per month.
Former state school Superintendent Linda Schrenko, who reports to federal prison a week from Monday, will collect in excess of $5,600 per month from Georgia taxpayers while serving eight years for defrauding those who pay doubly for her upkeep.
There is a way to stop this. And, in fact, had Schrenko come along now, her offense would have caused her to lose pension benefits. A state retirement law that went into effect on July 1, 1985, declares that any public employee convicted of a job-related crime is entitled only to reimbursement, without interest, of contributions the employee made to the retirement system. It applies, however, only to those who “first or again” become public employees after July 1, 1985.
It is equally vile that part-time politicians — members of school boards, city councils, county commissions and the Legislature — are able to tap into a pension system created for those who earn their full livelihood from public employment. By taking a full-time job on top of a part-time career, Jackson — and a long line of state politicians before him — are able to get pension payouts as though they had worked full time for government for their entire careers.
Legislators, in another of the mid ’80s reforms that came because of public outrage at scandalous abuses of state retirement systems, agreed that legislators who took office after Dec. 31, 1985, would not be able to transfer part-time service from the Legislative Retirement System to other systems for full-time benefits after Jan. 1, 1986.
The General Assembly needs desperately to do two things. One is to apply the law prohibiting full-time benefits for part-time service to all state and local pension systems. The other, and the more important reform, is to take steps now to protect both employees and taxpayers from temptation and abuse.
The ideal solution is first to guarantee that benefits will be paid as they now exist and are promised to all existing employees in the Teachers’ Retirement System, the Employees Retirement System of Georgia and the dozen or more smaller retirement systems the state maintains, and then to close them to new hires.
In the place of the defined benefit plan now offered, the state should create a defined contribution plan, something like a 401(k). New employees would immediately own both their contribution and the state’s, plus interest. When they leave, the benefits go with them.
The system that exists now is a magnet for abuse. Retirement laws affecting hundreds of thousands of employees and retirees are routinely rewritten for the benefit of well-connected individuals based on the changed circumstances of their lives.
And, as with Schrenko, the interpretation has been that if an employee works one day during any period that any benefit exists, it becomes a lifetime contractual benefit. The General Assembly could change that, too, by writing a general law declaring that a retirement benefit is not a contractual right. It’s not with Social Security.
It is truly offensive that working men and women, waitresses, maids and janitors alike, are forced to pay taxes to support lavish pensions, often unearned, for politicians who are additionally corrupt. The General Assembly can change that. And it should. If they stay honest, give them what their contributions earned — and no more.
- Jim Wooten is associate editorial page editor. His column appears Sundays, Tuesdays and Fridays.
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Comments
By Mid-South Philosopher
September 2, 2006 08:01 AM | Link to this
Good morning, Jim,
This happens to be one of those areas wherein I am MORE conservative than you, my friend!
While the Teacher Retirement and State Merit systems should remain in force for those currently enrolled, future public employees and elected officials (who work full-time) should be provided the opportunity to contribute to the “quasi 401 k” scheme that you suggest, and, certainly, legislation should be enacted to limit or deny benefits to employees who commit job related crimes.
Now, here is where I am MORE conservative…maybe, even, reactionary.
Members of the General Assembly, state regulatory boards and commissions (e.g. Georgia State Board of Education, etc.), county commissions, city councils, local boards of education… in fact, any “legislative” or “rule making” group or body should NOT be eligible for a state sponsored pension. These positions are or should be “part-time” and are “voluntary.” Also, it is from the occupants of these various jobs that we, citizens, receive the most grief!
OK, I am willing to cover these folk’s reasonable expenses. It seems to me 25¢ per mile, $3.00 for breakfast, $6.00 for lunch, and $12.00 for dinner should be sufficient for them. And, if they have to stay over night, $38.88 should provide more than adequate accommodations. We’re not made of money, you know.
If we are not going to enact term limitations, the least we can do is everything we can to make the legislative and regulatory positions less attractive to the “losers” who so often come to inhabit them.
I am off to watch some pre-teen, church league football.
Have a great weekend.
By Pete
September 2, 2006 08:13 AM | Link to this
What does Mid South allow people to use for the preteen church league football, a mini-nerfball purchased at a dollar store? What does he think is adequate for uniforms, skins vs undershirts? And just what is the winning team supposed to pour on their coach’s head, rainwater collected from buckets?
What a miser! Count your money today, midsouth? I think there’s a penny on the floor you missed. Oh, that mouse seems to think it’s his….50 years in Sing Sing for him!!!!
Even the birdman of alcatraz had a budget for his birds more generous than 3 bucks for breakfast.
Who educated this mid south guy about finance, Ghandi? This is why I ask, “where’s the supervision?”
Where?
By Pete
September 2, 2006 08:25 AM | Link to this
Jim, how long did it take you to write today’s blog? Do you have anyone to edit the blog before you post? How many rewrites did you do on this one? Just curious, no bash. (I’m a readin’, and I’m a likin’!!)
By Pete
September 2, 2006 09:18 AM | Link to this
Mid south needs to be reminded that there are people who eat kudzu, it is edible, and cheap, and available everywhere. Does he propose a new cost cutting measure with this new fact in mind???
Last night, Dateline NBC did a show about an alcholic who wrote a book, appeared on Oprah, and started AA type meetings called “MM”, which pledged that you can drink moderately even if you are a problem drinker.
Of course she was justifying her drinking by personifying moderation and employing herself as spokesman which further aggravated her self denial, and drew admiration and emulation from thousands of problem drinkers.
Of course she ended up killing two human beings while driving drunk. Of course all alcoholics would love to drink in moderation or at least convince themselves and others that they can drink.
But there is a life lesson, a universal truth about this story: Perception is not reality. Destiny is reality. We can spin our actions and delude each other and ourselves. We can pretend. We can lie.
But there is a truth, a reality that exists independent of our own observations. That is why a lie is such a big deal. That is why Bush is such a problem for the USA. He knew Saddam had no WMDs. He knew rocket tubes were unsuitable for enriching uranium. He knew that Powell’s slide show at the UN was all horse manure.
Proof? Would you send your army into a nuclear trap? Please. If W thought there was even a remote chance that Saddam had a WMD to use against our army, we would be stalemated diplomatically today like we are with Iran. And there would be peace. Whats wrong with drawn out diplomacy? Nothing!~
Yet he was acting at the bequest of defense industry contractors who have written our foreign policy for generations now. There has been a silent coup of sorts, conspired and completed behind the scenes by lobbyists for the people who make bombs. Who are they going to sell their bombs too? Warriors!!! Invent a war and get rich. The story of the ages. It’s ruining us again.
When will Iraq end? When they figure they’ve got their investment in war back. (never).
Saddam had the Shia Revolution well contained. Bush expects us to believe that the 1400 year old sunni/shia rift can heal and they can live in peace. Shia was born in bloody war and slaughter and murder over the question of Mohamed’s legitimate successor.
There is a truth about Bush: He never knew, nor did any of his advisors, that there was a sunni/shia islamic rift. Clueless, folks. They also knew nothing of the ethnic rivalries that intersect with the islamic ones, which complicates this whole region further, making a democracy of a melting pot of cutthroats impossible.
It doesn’t matter if we cut and run today, or stay the course for fifty years and spend trillions. Chaos will rule Iraq. The only solution is to allow these people to fight it out themselves, like we did. How would we like it if france and britain invaded the USA in 1861 to stop our civil war? Civil war is the birth pangs of any democracy. It just is. It’s natural and normal and unavoidable. Let ‘em fight. We can deploy across the Iranian Border and keep Iran honest. But let Baghdad be. or not be. but let destiny win, not spin.
By Joe T
September 2, 2006 09:19 AM | Link to this
Retirement abuse is out of control in Georgia, thanks to the good old boys in the general assembly. I know of a convicted drug smuggler who at age 42 got his state pension, thanks to the good old boys. Then without any education beyond high school a Clayton county retiree will receive over $100,000 each year, thanks to the good old boys. Enough is enough. Help throw the rascales out.
By Bill
September 2, 2006 09:34 AM | Link to this
There are 401a plans for government employees; Hall County is converting everyone except their top public employee to these by the end of next year. They also get to put their individually matched portion into a 527, which is like a traditional 401k without the penalty for early withdrawal. It has the portability the new social security dream envisions except for the four year vesting period. Working without a defined pension benefit reduces, in my mind, the value of the position. So eventually public servants will become less and less qualified as the talent seeks compensation comparable to their experience and the lazy or independently comfortable fill those positions. You get what you pay for; unfortunately the merit system does more to protect the truly slothful than those they serve…
By getalife
September 2, 2006 09:35 AM | Link to this
Jim,
Now you are writing something good for the people.
It is a good start.
By Dusty
September 2, 2006 10:05 AM | Link to this
Pete,
Did anyone edit your posts this morning? I think not. Otherwise you would not have been excessively lengthy and mostly off subject. But, of course, we always enjoy the political confessions of blindly liberal sycophants. That is until we dozed off.
I will agree that Mid-South was a bit draconian with his financial suggestions. The smallest breakfast at McDonalds would surely run over three Dollars. And motels, better to stay at the ones that change sheets.
Obviously something should be done about pension plans. Why let crooks go crazy with our tax money? I want to use that money to sun at Hilton Head myself. And educate the kiddies, of course.
So, lead the charge, Jim. Cut the corruption and all that. Go, Jim, go.
By Pete
September 2, 2006 10:16 AM | Link to this
Well!
By Janine
September 2, 2006 10:25 AM | Link to this
Public/gov’t pensions are useful and acceptable only to attract people to jobs that that for one reason or another might be undesireble i.e. pay little and require much , or are dangerous, etc. Many people today will accept positions for which the monetary compensation is low, but the fringe benefits such as health insurance and pensions are valuable. However, it is absurd to continue pensions for those convicted of any crime and for any part time worker to be elegible for pension. I am totally with you on this one, Mr. W.
By getalife
September 2, 2006 10:37 AM | Link to this
Pete,
Forget crusty.
She will be calling Jim unpatriotic and all that.
By Curious Observer
September 2, 2006 10:46 AM | Link to this
Typical conservative, redneck overreaction. Speeding ticket? Give him the death penalty. Jaywalking? Life in prison. One criminal act marring 29 years of otherwise honorable service? Take away his pension. It isn’t enough to send him to prison and make it impossible for the guy to find a job again. These sorry excuses for humanity want to inflict double ruin by applying the law retroactively.
Of course, the real agenda is to get rid of state-funded pensions altogether. That’s the undertone of all the conservative comments. They want to return us to the good ol’ days of dependence on churches, neighbors, and relatives in old age. Anything to reduce their taxes and return us to the law of the jungle. And Wooten is the pied piper of this parade of trash.
Well, we aren’t going back, and pretty soon you knuckle-draggers will be getting yours at the polls. No one can have much sympathy for crooked office-holders, but you people make Joseph Goebbels look downright humane. You’re disgusting. Now go to church tomorrow and show people how humane and pious you are. And don’t forget to talk up that business deal while you’re going to the parking lot.
By JK
September 2, 2006 11:01 AM | Link to this
Mr. Wooten, thank you for presenting pertinent, factual information today! I agree with your ideas for going forward as well.
Misuse and abuse of tax dollars is not limited to a particular segment of the population; yet it is an affront to all of us who pay taxes. The Georgia General Assembly should indeed take steps to eliminate waste and inequity, and work toward a budget and government that spends appropriately and operates efficiently. I hope that you will continue to inform your readers and encourage accountability in our government. Have a great weekend!
By Skinflint
September 2, 2006 11:09 AM | Link to this
I think we aughta trash the whole retirement gravy train once and for all. Throw out Social Security. Moochers should work till they drop. Let em work at Mickey D’s and they can eat all the freedom fries they can steal on company time!!
Throw out 401Ks. Company retirement benefits. Any annuity is just a picnic for freeloaders. OUT!
When I was retirement age, we didn’t have any fancy trust company funds to tide us over till we croaked, hell no! If we wanted any money we would grift the indians, clean out wishing wells and fountains, or wear torn jeans and unlaundered shirts to trick suckers to give us charitable donations. If you do that now, they think you’ve just shopped on Rodeo Drive!
Yeah, we lived off the land. That’s the way it was and we LIKED it!!!
By daniel p mcgarity
September 2, 2006 02:57 PM | Link to this
All the liberals who eschew personal responsibility want to pay for the crooks and opportunists who abuse pension systems with tax funds. How admirable. The problem is that they always want to pay for the neerdowells with SOMEBODY ELSES money! There is no honor in that. It is always easier to wrie checks out of someone’s checkbook other than your own. Buck up, do right and play by the rules or be happy living under an overpass on I-20.
By deegee
September 2, 2006 03:04 PM | Link to this
What makes anyone think that a bunch of government hacks are going to do something to stop the gravy train for another bunch of government hacks?
By Mid-South Philosopher
September 2, 2006 05:11 PM | Link to this
Old “Ebeneaer Scrooge” Mid-South Philosopher here.
I have been away since early this morning and didn’t realize that my “sarcasm” would ignite such reactions.
Just a couple of responses to various perceptions expressed:
Pre-teen, church league football is not financed by the taxpayers.
From the size of some of the “bellies” hanging on some of our state legislators, county commissioners, city council people, I think it is safe to say that they have NOT been limited in their diet to “kudzu!”
Just one clarification:
I don’t have any problem with public employees or even elected officials in everyday jobs having a reasonable retirement plan. Jim Wooten suggests a “quasi-401-K” that would be the property of the employees and could be transferred to the private sector when they are fired or voted out of office. Sounds good to me.
Major point:
I am adamantly opposed to people serving a lifetime in the “legislative” branch of government at any level from “city council” to “Congress.” Since we will NEVER get the various legislative bodies to pass the necessary constitutional amendments or legislation to provide for their own “term limitations,” I just don’ t believe that we should make the jobs more attractive by providing too many perks…a pension being a chief attraction.
As far as my “draconian” financial rates for “expenses,” since when is it necessary for the citizens to pay “full” expenses for (in most cases) their “part-time” help? Legislators would have to eat if they were home. School teachers, policemen, firemen, and emergency medical technicians don’t get their meals paid for while they are on the job and they are full-time employees!
By Shooter
September 2, 2006 05:17 PM | Link to this
To me this sounds totally insane, who would allow the hard working people of Georgia to be molested in this manner.Let me guess the scumbag politians that we elect to look out for us.I’m ready to throw the incumbants out and elect the new guy even if he has 2 heads both backwards,he’ll be my man, Maybe if we do this for a couple of elections they’ll get the picture.
By Matte Finish
September 3, 2006 09:40 AM | Link to this
I’m $55 overdrawn in my checking. Good thing my retirement plan all along has been to make my own beef jerky, eh?
Has whitewall tires ever looked good on any car at any time since the Model P? Or was it the model T? Dammit, I still cant spell. (BTW: if you spell the Iranian President’s name correctly, the terrorists win).
… and when you turn the tire around to hide the whitewalls, is that even a safe way to travel, going against the tread like that?
Ramsey stalker Karr now says that he did it all to impress Jodie Foster. Whew, for a minute there, I thought this guy was a freak.
The time I nearly grabbed a shotgun and blew up my TV was when John Hinckley Jr. was asked in a jailhouse interview if he thought Reagan was a good president. “Lets give him a chance.” Uh, we were giving him a chance, fool, and you went and shot him. The total irony of that answer made me snap.
News: They captured the #2 Al Queda terrorist in Iraq! That completes the entire 52 card deck of most wanted. This latest guy was the King of Diamonds. When asked how they knew it was him, an Iraqi spokesman said that his ear was bent-in a little which like totally gave him away.
This latest terrorist was captured while playing a game of B-52 pick up with naive rookie jihadists that had just flown in fresh from Kabul. (boy, were their WIVES arms tired. Their arms were tired too, not from flying, but rather from beating their wives during the flight).
I should have gone to church today. I almost went but then I remembered about that deacon I hate. It’s not fair. This guy plays overgrown altar boy, and wears robes that would embarrass the pope, and has the worst sneer of condemnation I’ve ever encountered even counting my eight grade teacher, Sister Mary Philomena, and her moustachioed snarl. (Roman Catholicism is not pretty). Worse, they let this deacon give the homily, (and boy do I grit). He thinks he’s a stand up comedian. Torture. I pray for purgatory to swallow me up the entire mass. Then of course there’s that part in the mass where you have to hold hands with everyone around you during the lord’s prayer. Even if the person is in the pew behind you, you have to somehow grab their hand. WAIT! There’s a guy over there by himself…. Maybe I can reach him with my free foot…. It was a prayer, now it’s a game of Twister. Is there a prayer request? Yeah! I’d like to get my nose out of the crack in this fat guy’s a*ss.
By Poison Apples
September 3, 2006 10:34 AM | Link to this
Santorum vs Casey (Pa. Senatorial opponents) debating on Meet the Press: Santorum defends Bush’s Iraq War by talking about Iran, and Casey lets him get away with it.
This is the Democrats big problem. They cant debate. No talent whatsoever. they need me badly. I coulda toasted Santorum like the marshmellow waffler he is. Offering services here. Ignore at your party’s peril.
By zeke
September 3, 2006 11:32 AM | Link to this
Pete and his babling essay are truly idiotic!
By Ralph
September 3, 2006 11:40 AM | Link to this
As a native Atlantan and staunch Democrat, I rarely have agreed with anything Mr. Wooten says. But I definitely agree with him on this. As a 15 year state employee, why should I and others have to pay for lavish pensions for convicted felons and corrupt politicians. Let’s hope the politicians take notice and us voters change the constitution so that the crooks won’t get their pensions at our expense!
By Pete
September 3, 2006 11:59 AM | Link to this
Well!
By vermin8
September 3, 2006 12:00 PM | Link to this
401ks are the way to go. There is not reason why someone should starve in retirement due to having a defined contribution vs. defined benefit plan save one - that he/she was too short sighted to save. So what? These are the same people who even with a defined benefit plan will live at their means then get hit with a “surprise” (eg, medical) and not have any money left. The main difference between pension and 401k is accounting - instead of throwing all the contributed dollars into a pot for “everyone” each dollar is marked with a name. If pension plans are as solid as supporters say they are, then this should make no difference. If the plan runs out of money before recipients are allocated what they were promised under defined benefit, then the defined benefit made an undoable promise - and ergo must be stopped before it goes broke.
By dahreese
September 3, 2006 01:38 PM | Link to this
Once again, in mid-stream of his article, Jim Wooten attempts to fool a gullible public and connect two unrelated subjects. While establishing some good points about criminal wrong doers retaining their state retirement benefits, he just cannot/will not resist taking his customary swipe at Georgia teachers and Georgia teacher retirement.
Mr. Wooten knows that Georgia teachers are much better off with the retirement system they now have, rather than risking their retirement funds into some uncertain 401K program run by “private interprise”.
Being a true right-wing Republican, he just can not stand that the Georgia teacher retirement system works, it is well managed, it is soundly vested, the returns go to the teachers, and that his buddies in the banking and investment world do not control it and make money off of it.
By Miss Crabapple
September 3, 2006 03:27 PM | Link to this
Maybe a few afternoons after school cleaning erasers will change Mr. Wooten’s mind about teacher pension plans and stuff.
By Miss Crabapple
September 3, 2006 04:54 PM | Link to this
History channel showing a killer series on our Revolution and the winning of the war, and then how close to failure it was that we actually formed a government. Can Iraq do the same? We almost didn’t and we were the same peoples. Iraqis are divided by history, religion, ethnicity, and a thousand other things.
And they aint got no Benjamin Franklin.
By coachhollywood67
September 4, 2006 12:56 PM | Link to this
@dahreese I’m glad I’m not the only one who caught the “bait and switch” premise of the article. Somehow Jim goes from talking about convicted criminals who get a pension to one of his usual diatribes putting down teachers and any benefits for same. I’ve often wondered if a teacher was mean to him in his youth or something, because he sure doesn’t seem to want us to be paid adequately or to receive any decent benefits after we retire, and that’s something I’ve been picking up on for years in his columns. I agree with him sometimes but his stances on education and compensation of hard working government employees is where I’ve always parted company. The mindset seems to be that teachers are overpaid and have it too easy after retirement. Sheesh. Try teaching sometime and see if you still feel that way.
By dahreese
September 4, 2006 01:49 PM | Link to this
Thank you.
As I responded in a previous article by Mr. Wooten, “Although he’s aware of it, Mr. Wooten rarely acknowledges the influence of the “failing homes” and “failing parents” that these “failing schools” have to deal with, but he expects teachers to overcome that and still teach their subjects.
“Our nation’s leaders, like Mr. Wooten, grumble at the quality of public education, but they aren’t about to dig down into their pockets and pay for what they want (It’s easier to gripe and say, “Look at what we’re already paying.”), because an investment in all of the people rather than some of the people will take money out of the pockets of big corporations and the already wealthy.”
Interesting how the critics all go to church and sing, “Red and yellow, black and white, they are precious in His sight” - until it comes to money.
You don’t have to be a blind conservative not to see it, just an ignorant one to deny it.
By John
September 6, 2006 09:18 AM | Link to this
Some country we live in where convicted felons can still collect their pensions while hard working Americans lose theirs when some over-paid CEO (or judge) decides to cut pension payments. And it is especially revolting when you consider that the felons are convicted of betraying the very people who must fund their pensions through taxes, and the CEO doesn’t have to worry about his pension because he made sure it was gauranteed.