Americans’ inability to think about pension costs on display in the Boston Globe
The Boston Globe took the trouble to publish “64 City of Boston workers earn more than $250,000” yet the word “pension” does not occur in the article.
It is slightly interesting that “Police Lieutenant Timothy M. Kervin was paid $348,000, which included $163,000 in overtime.” What is a lot more interesting is that, according to the city’s official site, his pension will be paid out at 80 percent of $348,000 (assuming that he can keep up the overtime for three consecutive years), not 80 percent of what would seem to be his base salary of $185,000 per year. If he retires at 55 and lives to 90, that’s an extra $130,400 per year or roughly $5.9 million total (pension payments of $12.5 million rather than $6.66 million; inflation adjustments would make the nominal payments higher).
That one of America’s most lavishly funded newspapers can’t put this kind of arithmetic together is to me an indication that as long as we give politicians the ability to hand out pensions we are virtually guaranteed to bankrupt ourselves.
Related:
- Pensions: How states and local governments indulge in deficit-spending
- History of Public Employee Unions
- If you thought the latest economic collapse was bad…