[Publib] Pension? What pension?

[James Casey]

Another reason why retirements are being postponed is the escalating
costs associated with health insurance and the fact that many pension
plans have absolutely no provision for affordable health insurance for
their retirees.   I recall that Ohio had a Public Employees Retirement
System in place where one would have health insurance upon retirement
with only 5 years of service (vested rights).  It was later changed to
10 years to qualify ant then, as I understand it, the health insurance
benefit is being phased out altogether in 2007.   The Illinois Municipal
Retirement System never did have health insurance provided, but it does
have an affiliated health insurance carrier who charges non-discounted
premium rates and can refuse coverage (which is just about the same as
nothing at all).  It is small wonder that so many of us can't afford to
retire until 65+ and Medicare (which I hope won't disappear).  

 

Even if a pension income of decent size and bank roll of a million bucks
via IRAs was in place, all of that could be wiped out by one serious
illness to a retired person or member of her/his family.  Health
Insurance (if we can get it) is also tending to become costly.  

 

Let's face it.  Things have been getting worse and worse for working
folks for several decades.  Librarians aren't the only workers to be
injured in this way.

 

James B. Casey - My own views

 

________________________________

From: publib-bounces at webjunction.org
[mailto:publib-bounces at webjunction.org] On Behalf Of Backwage at aol.com
Sent: Monday, October 09, 2006 11:56 AM
To: jrichmond at alphapark.org; publib at webjunction.org
Subject: Re: [Publib] Pension? What pension?

 

Many public sector pension funds are hurting, and many more will join
the club.  Nobody wishes to acknowledge that, given the actual numbers,
it will be unlikely that ultimate levels of pension payout will match
expectations.  The difference between state/local pensions and the
retirements provided to federal government employees is that the feds
can print money to back their debts; obviously the states can't.  The
public sector pensions are finding themselves in the same pinch as
private sector funds, and for the same reasons.  

 

An important consequence of this situation is that many workers are
opting to remain in their jobs years beyond their expected retirement
date, for the sake of financial security and to build up additional
pension credits.  I believe that this is part of the reason for the
failure of the "librarian shortage" projections to come true.  Beyond
that, the extension of library careers beyond expected retirement dates
means that the highest-paid workers are remaining in the pool.  What
this means for library staffing budgets is obvious.  

 

M. McGrorty

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