Findings from TUA’s pension project on Tucson, Arizona, are featured in this story from KGUN-TV 9. To see video of the story, click on the image below.
TUCSON (KGUN9- TV) – It’s costing taxpayers millions of dollars a year across Pima County and the City of Tucson, and one group says it’s gone too far. They’re talking about big pensions for government workers. It’s at the center of the U.S Postal Service’s financial crisis, and the issue that crippled the state of Wisconsin and led to the governor’s recall election.
A group called Taxpayers United of America (TUA) is now traveling the country to spread the word on pensions, and how much taxpayers are putting in.
Jim Tobin with TUA says the system needs to change.
“it’s just tearing the country apart and if it doesn’t change, it will. It will tear the country apart,” he sad, “Taxpayers who make an average forty-thousand dollars a year in the Tucson area are subsidizing these people for up to thirty years or more to do absolutely nothing.”
9 On Your Side dug deeper into “double-dipping” in February, finding out Tucson city manager and former police chief Richard Miranda takes in more than $300 thousand a year with his police retirement pension and current salary.
Others on TUA’s list of top pensions in Pima County earn as much as $125 thousand a year. If they retire at age 60, it could mean millions of dollars.
9 On Your Side wanted to know how this is justified. Pima County supervisor Richard Elias says competitive pension make up for salaries that pay less in the private sector. He added the top name on the TUA’s list was the county’s chief forensic scientist… a doctor who gave 30 years to public service.
“I would say that many more of our employees are just like them and retire with thirty-thousand dollar salaries than that list of names that you have there,” he said, “Those are the exceptions rather than the rule.”
According to a 2009 Bureau of Labor Statistics study, government and private sector job salaries on average are similar, with local government employees earning an average of $2 thousand less, but factoring Federal and state workers, it averages about $2 thousand more.
Findings from TUA’s pension project on Arizona are featured in this article from NewsTalk 550 KFYI.
Making you more aware that a big chunk of your tax dollars pays for government pensions.
A fiscal watchdog group, Taxpayers United of America, is making its way across Arizona to spread that message to the people. Organization Founder Jim Tobin says 80% of local government spending goes toward pensions and salaries. He says the current system needs to be reformed, especially since half the states in the country do not release information on government pensions. Reports on pensions are available to the public in Arizona.
Tobin points out that Wisconsin and California have actively helped to cut government hires and pensions. He says he hopes our state will soon follow suit.
View release as a PDF
TUCSON—Taxpayers United of America (TUA) today released the results of a new pension study of Tucson government retirees.
“Arizona lawmakers have made modest attempts to undo the damage of administrations past, that have made budget-crushing deals with union bosses whose only concern is their own job security,” stated Jim Tobin, President of TUA.
“But despite efforts to reform the pension system, the very judiciary that will benefit from the lavish payouts ruled that the reforms written into law were unconstitutional, while the weight of the system’s unfunded liabilities crush the taxpayers. Government pensions are the number one budgetary problem in the country and Arizona is no different.”
“While residents across Arizona face crushing taxes, falling home values, high unemployment, and a painfully slow economic recovery, government employees continue to receive stunning pensions largely funded by taxpayers who will never collect more than about $22,000 a year from Social Security.”
“The purpose of our study is to put some perspective around individual pensions, to put them in terms to which the average taxpayer can relate. Taxpayers need to know how much Arizona’s government retirees are being paid not to work and the astronomical accumulation of those payments over an average lifetime. The 100 top government retirees being released today will collect over $232 million to do absolutely nothing!”
Tobin continued, “For example, Richard Putz, a retired Tucson employee, collects an annual pension of $113,979. His estimated lifetime pension payout could be a staggering $3,419,377.*”
“Bruce O. Parks, retired Pima County employee, has an annual pension of $125,292*, with an estimated lifetime payout of $3,758,756.* ”
“James Keene, retired Tucson employee, has a lifetime estimated pension payout of $3,141,209* with an annual pension of $104,707*.”
View pension amounts below:
“Arizona’s government pension systems are crushing middle class Arizonans. Replacing defined benefit pensions for all new government hires with social security and 401(k)s would eventually eliminate unfunded government pensions. Current government employees must consider a voluntary pension contribution of up to 10% to preserve their pension benefits. Additionally, all members should pay for 50% of their healthcare premiums. We need a stable system that is fair to both taxpayers and beneficiaries or pension checks will stop coming,” added Tobin.
*TUA submits FOIA requests for pension recipients’ actual annual pensions, then estimates lifetime payouts based on IRS Form 590 LE of 85 and retirement at age 55.
