More Retirement Woes

Mary Williams Walsh expresses the desire of State and Local Governments to shed pension benefits wherever possible. A new potential Congress could realize that rationalization of pensions can come only with national action. My Thoughts on the matter tend towards complete separation of pension benefits and health care, but a unified system where certain maxims exist in the Charter. Below is my take on what such a Pension system would require.

Vestment must be in Dollar evaluations, not Years. I would suggest $30,000 per segment, and call them Years–for Those who insist on a Career performance. Contributions would be made by all Employees and Employers at equal reduction–Employers subject to completion of the payment. All Labor will be assessed a Withdrawal for Pension Fund based upon the base Wage granted–I would suggest this be done as a doubling of the Social Security tax with half of the taxes going to the Pension fund. The limitation of the Earnings taxed will be eliminated. Failure to comply will be assessed double of the recovered taxes immediately, or an additional 18% Interest per Year will be charged to the Employer. Bankruptcy will not void compliance, and the Pension Fund will be the first Creditor paid.

The Pension Benefit will be paid out in Segments each Year, with the Pension Fund determining how many Segments are to be paid each Year; each Beneficiary getting how many Segments are due him or her–split into 12 payments, but all getting at least one Segment to avoid excess Welfare Costs. The Charter will forbid expansion of the Pension Benefits beyond the total of revenue collected each Year.

Will it work? Who knows! The trouble is known–Program breakdown in the Public Sector, Private Sector abandonment of Pension systems for Employers. Stopgap programs like 401(k) and IRAs fail to cover the substantial number of Workers necessary to provide a sound retirement system. We have to create something to handle the essential Problem of Retirees who live too long; therefore, the Period of sustained Income will exceed current Public or Privately allocated investment for future retirement. lgl