Padded Pensions in New York

May 21, 2010 by  
Filed under Fools of Finance

Do you need another reason not to live in the state of New York? Read on and you will discover one. 

Pension abuse is rampant in government and no one cares. Final year overtime padding drives the size of the pension benefit to be much larger than the highest working salary.

In some cases, town government forces private construction companies to hire off-duty cops as flagmen. That’s right, those bored guys who wave orange flags around on road crews. Even though they are paid with private money, that off-duty income is reported as overtime for purposes of padding their pensions. What a racket.

Payback Time – Padded Pensions Add to New York’s Fiscal Woes

Why do people complain about Social Security while this pension abuse continues unabated? Find me one worker who receives more in annual Social Security retirement benefits than he earned on the job.

If you live in New York, you should vote the bums out or leave. When the tax money dries up, the pension plans can go bankrupt. That would be sweet revenge administered to the pension padders, because the pension guarantee fund will pay much less.

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9 Responses to “Padded Pensions in New York”
  1. Melissa says:

    The term for this is ‘spiking’ and its not just happening in New York. The practice is rampant in my area of the Midwest too. Between ‘spiking’ and ‘double dipping’ it’s no wonder governments are running amazing deficits. The solution in the midwest seems to be to raise my property taxes.

  2. morrison says:

    I live in NY and I wouldn’t dream of leaving. I sit and wait patiently for this whole entire state to sink into the Hudson River. Corrupt is too kind of a word.

    Yet, NYS has the best consumer protection laws and it’s citizens are well cared for.

    We’ll get through this mess and be more the better for it.

    We got through 9/11. Our NY City Police Force is the greatest in all of the world, as is our firemen. We’ll get through this.

    Voting the bums OUT!!!!!!

  3. kitty says:

    I wouldn’t dream of leaving NY either. It’s a great place. Sure, there is much corruption going on, but there are good things here too. And for those of us who actually like opera, ballet, theater, there is no place like NYC. So unless they take the Met and move it elsewhere, I am not leaving NY. Our PBS station on TV actually shows some good stuff – great performances, great performances from the Met, etc. Not all areas have good PBS stations.

    But yes, there is much corruption. In my little town in Northern Westchester, our “village manager” earns close to 200K – more than the chairman of Federal Reserve. This is not NYC, by the way, this is a tiny town. Not only that, at one time he got extra 40K for doing some other work like figuring out who gets tax rebates for low income (village auditor or whatever the job was called – I don’t remember). The problem with that – he was doing it in his work hours. So why should he get extra 40K if he works the same hours? Another problems was – he was incompetent. For one thing, he was routinely adding rolled over IRA to income which resulted with some retirees not getting rebates they were entitled to, until someone brought it up (I know the person). He called the county office and they confirmed that rolled over IRA is not income. He said – “oh I didn’t know”. The trouble is, people can only go back a couple of years to get this money back.

    I also don’t understand why our city employees should get pensions from our tax money when most people who pay taxes don’t. I understand the police who risk their lives every day for our safety, but city clerks???? And why should they get a raise every year when we supposedly don’t have inflation? Most of us don’t get a raise every year, at least not automatically.

    But… It’s still a great place to live. Weather is relatively nice, it’s beautiful. I’ve been considering where it’d be nice to retire where the taxes are lower, but the trouble is – there is really not a better state.

  4. MasterPo says:

    I would definately act on leaving NY. But my wife has a great job and while I probably could force her to go I won’t. But I have told her many times if she ever lost her job we’re outta here!!

    Probably down the coast to VA.

  5. kitty says:

    “Probably down the coast to VA.”

    Way too hot there. Not much in terms of arts either… Nice beaches though. Whichever you like.

    I’d rather enjoy this live:

  6. morrison says:

    A past NYC Mayor, David Dinkins, once said, that even the poorest of the poorest children in New York were still the most culturally, well educated children of America because of the plethora of museums, art galleries and cultural events most of New York has to offer.

    We have the finest beaches in the world on the downside in the Hamptons. And to the north we have the great Catskill Mountains and Niagara Falls. Our farms produce the finest cheeses and dairy products, excellent fruits and vegetables (our apples are fantastic!) we raise good quality cattle, chickens and ducks and we have delicious bakeries everywhere. No one yet has beaten our NYC bagels or Junior’s cheesecakes. I could go on and on and on and on.
    Since the early settlement days when the Dutch landed here, New York has been corrupt. Remember, the island of Manhattan was bought for a mere $24 (bag of shells)? Now, Manhattan and Times Square are the crossroads of the entire planet!

    Master Po, you live on Long Island. My condolences. Your county charges the highest taxes in America. If you do move, move upstate. You’ll be glad you did.

    We’ll get out of this mess. Native New Yorkers are a tough brew.

  7. kitty says:

    “And to the north we have the great Catskill Mountains and Niagara Falls.”

    Don’t forget Adirondacks.

  8. MasterPo says:

    Morrison – I wouldn’t use Dinkens as a reference for anything. He was probably the WROST mayor NYC has seen since th 70’s.

    More business left NYC while under his reign than under Koch or Gulliani.
    Race relations went down the tubes (e.g. central park jogger rape, Crown Heights riots, etc)
    Taxes went through the roof.
    Police force was cut his first week on the job.

    Shall I go on?

  9. MasterPo says:

    ps- I was born and raised in Queens until my 30’s. I know of what I speak.

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