<p>dstark yes the funding was at 106% when the various governors started to play games</p>
<p>That is a problem. Happens in the private sector too. Or it used to when private pensions were overfunded.</p>
<p>Your pension was barely overfunded. What was the discount rate used? 9 percent?</p>
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<p>Parties not keeping contracts are common. I have some pretty big doubts about the company that my pension is with being around in current form in 15 years. I see some proposals around to increase tax rates on 401Ks and IRAs or cap contributions and I get the feeling that governments are trying to squeeze cash from anyone that doesn’t complain.</p>
<p>My former manager was making some complaints about his military retirement benefits being changed and he’s pretty unhappy about that. I also run into kids around here that claimed that they wouldn’t have to worry about paying for college and maybe they lost their jobs or the value of their houses went down or their college fund tanked in the market. You basically do the best that you can and then roll with the punches.</p>
<p>Just my opinion…I think the amount of dollars that the local, state, fed gov’t should add or match to an employeee’s pension/401K is ZERO. These are taxpayer dollars. Those who are self employed or working for small companies do not receive this benefit.</p>
<p>This inequality seems to be against everything that that I thought the majority believed in.</p>
<p>Sorry…just a little sensitive as I am about to write a check to my friends at the IRS.</p>
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<p>It sounds like it depends on how the conversion is done. It doesn’t seem to be a problem in the private sector.</p>
<p>Kluge. There goes your reputation.</p>
<p>If the govt wants to save money, it should convert its retirement plans to 401ks. </p>
<p>I don’t think people who are going to receive pensions will be too happy.</p>
<p>dstark-kajon not kluge</p>
<p>kajon that is fine but not after the fact. </p>
<p>As for funding NJ’s budget is $35 billion. State operations is $3.5 billion the other $31.5 billion is available to be used for various purposes. Not funding the pensions was a political choice not an economic one. There has always been enough funds to make the contribution required.</p>
<p>It was a political choice.</p>
<p>Kajon… Well the writing is small on this screen. </p>
<p>Makes sense now.</p>
<p>So if you convert my pension to a 401k what do I get? Only my contributions with no interest or my contributions plus what the State was supposed to contribute with some average return calculated over 33 years?</p>
<p>I love my job and really do not want to retire so be fair with me and I will take the 401k and work another 30+ years.</p>
<p>There is a push in Florida legislature this current legislative session to end traditional pension plan for new state employees beginning next year. Right now new hires can choose participating in either pension or 401k plans in Florida Retirement System (FRS). It’s political, the pension is 87% funded and is solvent…some though want to try to save money for state going strictly with 401ks…state may end up losing long-term though when no one wants to work at government jobs in Florida anymore, including educators, cops, etc.</p>
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<p>That would be up to your politicians to decide.</p>
<p>No- it would be up to a series of judges to decide.</p>
<p>dstark - I can live with the fact that my reputation is already shot:p </p>
<p>tom1944, I agree that they need to find a way to honor current contracts. In my area they are proposing adding an additional fee to licensing to cover the unfunded gov’t pensions. It will be interesting to see what happens.</p>
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<p>Maybe after the politicians decide.</p>
<p>What are you looking for? Sympathy? Not the best time of the year for the tax man complaining about the government.</p>
<p>In MA, the many reforms only apply to new employees.</p>
<p>In my opinion, much reform needed.</p>
<p>BUT changes should apply going forward only.
If you’ve lived and worked under a set of assumptions for 30+ years, the rug shouldn’t be pulled out at year 31. </p>
<p>Our son is a new teacher. His contributions for his benefits is more than others in the past and his retirement benefits will be less. But he knows the story going in and is not griping about what he isn’t getting. </p>
<p>Different from reneging on a deal after the fact.</p>
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<p>One of the problems with pension funding is that people are living longer than before. I think that technology has changed assumptions going forward on both costs and number of years. So that’s an assumption that did change that organizations that made deals long ago have to deal with.</p>
<p>I never look for sympathy as I said earlier I have no problem if people argue against the pensions but they should do so factually and not get upset if their misconceptions are challenged. There are problems and they should be addressed but if we allow politicians to distort what is true and what is not we get sold a bill of goods.</p>
<p>Sorry if I offended you.</p>
<p>“So if you convert my pension to a 401k what do I get?”</p>
<p>You get screwed.</p>
<p>If corporations and the govt save money by converting, there are going to be losers.</p>
<p>The pensioners are losers.</p>
<p>They converted my brother over at Big Blue and he feels like he hit the jackpot. (Others may not agree).</p>
<p>They frooze his pension at a certain date and now he contributes 6% to his 401k and IBM contributes 10%.</p>