Findings from TUA’s pension project on Altoona and Blair County are featured in this article at News Talk 1240 WRTA.
A national organization says public pensions are drowning local municipalities financially and leaving taxpayers on the hook for their costs.
Representatives from Taxpayers United of America paid a visit to Altoona on Tuesday to highlight the problem citing generous pensions that are currently paid to local municipal retirees. Rae Ann McNeilly tells WRTA News major pension reforms are needed to stave off the problem.
The group provided reporters with a list of top pensions paid to retired workers in the City of Altoona and Blair County. Dozens of pensions are valued at or above the $1-million mark each – many of them belonging to retired unionized workers.
McNeilly also says the system allows former public workers to retire on a public pension and then begin another public sector job collecting another taxpayer salary. The group will take their message to state lawmakers in Harrisburg later today.
View release as a PDF
ALBANY—Taxpayers United of America (TUA) today revealed retired government employee pensions for the County of Albany, New York’s state government retirees, and statewide government teachers. Many New York government employees are becoming pension millionaires when retired.
“Many government retirees make more in pension payments than the private sector taxpayers make in salaries,” stated Christina Tobin, TUA Vice President.
“According to the Empire Center, ‘NYSTRS and NYSLRS are ‘fully funded’ by government actuarial standards, but we estimate they have combined funding shortfalls of $120 billion when their liabilities are measured using private-sector accounting rules’. Pension liabilities continue to be the number one budgetary concern for states, counties and municipalities,” added Tobin.
“I have hand delivered a letter to Gov. Cuomo and will mail the Legislature, calling for additional pension reform that will be both fair and sustainable. TUA is ready to work with legislators to implement reforms that will preserve the system for those that are relying on it, and bring relief to the taxpayers who are obligated to fund it.”
“Private sector New Yorkers are struggling in the ‘Great Recession,’ with an average personal income of $36,000.
The unemployment/underemployment rate (U6) is 14.9%, and New York State is still the second highest tax state in the country. The maximum Social Security annual payout is $22,000, regardless of how much one may have earned in their working career.”
“William E. Carl, retired Albany County government employee, collects an annual pension of $77,423. His estimated lifetime payout is $2,903,379.*”
“Phillip W. Wood, retired from the State University of New York, has an annual pension of $186,295 with an estimated lifetime payout of $6,986,069*.”
“Retired New York teacher, James H. Hunderfund, has a lifetime estimated payout of $11,859,188* based on his actual annual pension of $316,245.”
“New York government pension systems are making millionaires out of public employees at taxpayer expense. Replacing defined benefit pensions for all new government hires and with social security and 401(k)s would eventually eliminate unfunded government pensions. If current government employees would just increase their pension contributions, they would preserve their pension benefits. Anything less will not ensure benefits for those counting on them. We need a stable system that is fair to both taxpayers and beneficiaries.”
“Every employee deserves a fair wage for the work they do at the time they do it so they can plan for their own retirement, rather than counting on the bureaucrats who helped create such an unstable situation.”
“This is the time for the political courage to do what’s in the best interest of taxpayers, rather than the special interests. Let’s knock any politician out-of-office, who cuts deals with bad union bosses and bad corporations! Republican or Democrat, what’s the difference, with numbers like these?”
View pension amounts below:
![newsworks](https://www.taxpayersunitedofamerica.org/wp-content/uploads/newsworks-590x807.gif)
Retired Philadelphia Police Commissioner Sylvester Johnson tops their list with an annual pension of over $150,000.
The group, Taxpayers United of America, hopes knowledge of the high-end figures will energize the public to rally against what it sees as a corrupt and unsustainable tax-payer-supported government retirement program.
Included among those they’d like to see advocating on their behalf are the lower-earning members of municipal employee unions themselves.
“The rank and file are playing by the rules that unions and politicians have made, and they’ve been used as pawns,” said Rea Ann McNeilly, Outreach Director of Taxpayers United of America. “These pensioners, who work hard for their money, will one day go to the mailbox and there just won’t be a check.”
The idea of pension reform is not news to Philadelphia City Hall.
The city’s pension fund — which is paid for both by contributions from employees and by city tax payers — has been underfunded for years.
At this point, the city is so in over its head that it only has money for half of the pension payouts that it owes. Basically, it has around 4 billion dollars for an almost 9 billion dollar tab. (And this is actually an improvement over last year’s estimates).
Blame for the shortfall can be widely placed: imprudent labor deals past, the spike in baby-boomer-generation retirees (there’s currently more municipal retirees than there are workers), the 2008 stock market crash.
But, according to city finance director Rob Dubow though, the time for blame is gone.
“We’re at a place that — however we got here — we really can’t afford the level of benefits that we’re providing.” said Dubow. “The system we have now doesn’t really work for taxpayers and in the long run it won’t work for employees either.”
Ten years ago, about $200 million of the city’s annual budget went to pension pay outs. Now over $500 million does. Here Dubow points to the obvious: the more that goes to pensions, the less that goes to city services such as parks and recreation and the streets department.
The Nutter Administration says the only way to close the pension gap is by renegotiating labor contracts with the city’s two non-uniformed municipal-workers unions: District Councils 33 and 47. The former represents roughly 10,000 “blue-collar” workers, and the latter roughly 3,000 “white collar” ones.
As of now, the city and the unions are at loggerheads. The city says the pension system can be salvaged if the unions agree to a few key changes. They want current municipal employees to contribute a higher percentage of their salaries to the pension fund. And they want new hires to accept a “hybrid” retirement package that would include a limited taxpayer-supported pension, as well as an employee-supported savings fund such as a 401k.
Current retirees would continue receiving their benefits as contracted.
The unions have not bit on the deal, and — at least in the short term — have suffered for it. They haven’t received pay raises since 2008.
The Nutter administration maintains that it won’t renegotiate contracts until the unions agree to drastically reform the pension system.
Union officials claim that they shouldn’t be held responsible for what they see as the city’s poor financial management.
“They’ve gotten into this jam because of their actions,” said Bob Bedard, spokesman for district council 47. “The city didn’t put its share into the fund, and while they’ve skipped payments, the union members have continued to pay their share.”
Bedard also pointed to the fact that, historically, pensions have been government’s way of attracting top talent to lower paying public sector work.
“Generally, people who go to work for the city get paid less, but cities make employment attractive by offering more holidays and better benefits than private sector positions do,” said Bedard. “And now they’re trying to pay us less and cut our benefits because they run a bad government.”
Despite the unions’ displeasure with the Nutter administration’s plans, the prospect of a strike does not seem to be on the horizon.
“Being in an unhappy situation is better than being in a worse one,” said Bedard. “It’s hard to make up the money you lose by going on strike.”
Taxpayers United doesn’t think that city residents should be satisfied with the prolonged standstill.
“Somewhere along the line those negotiations have to be made and if these people don’t make the deals that fix the problem, the solution is to vote them out of office,” said McNeilly.
Below is a list of some of the city’s top pension recipients, including how much they earn in yearly pension, and how much they personally contributed to the fund during their tenure as city employees:
Sylvester Johnson: (Former Philadelphia Police Commissioner) Annual Pension: $152,440. Personally Contributed: $78,671.
Vincent Jannetti: (Former Financial Oversight Director) Annual Pension: $133,097. Personally Contributed: $84,134.
Dominic Sabbatini: (Former President of Penn’s Landing) Annual Pension: $131,206. Personally Contributed: $105,110.
Harold Hairston: (Former Fire Commissioner) Annual Pension: $125,921. Personally Contributed: $73,172.
John F. Street: (Former Mayor and City Councilman) Annual Pension: $116,387. Personally Contributed: $48,175.
Lynne Abraham: (Former D.A.) Annual Pension: $107,091. Personally Contributed: $141,476.
Augusta Clark: (Former City Councilwoman) Annual Pension: $99,196. Personally Contributed: $71,019.
The average annual pension paid to a city employee in 2011 was $18,148.