New Hampshire Taxpayers Still Face Crushing Government Pensions

By on October 2, 2012   /   Latest, New Hampshire, Pension Reform  

View release as a PDF
Manchester—Taxpayers United of America (TUA) today released the results of a new pension study for the cities of Manchester, Concord, and Nashua; the counties of Merrimack and Hillsborough; and New Hampshire State government retirees.
“New Hampshire lawmakers have only flirted with reforms of the government pension system,” stated Jim Tobin, president of TUA. “New Hampshire has one of the lowest funded ratios in the country and reforms are still in the discussion stage.”
“While residents across New Hampshire face crushing tax increases, falling home values, rising 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.”
“New Hampshire is the 19th state in our nationwide pension reform tour and the results are consistent with our findings across the country: government pensions are out of control. Across the country, millions of bureaucrats are being paid billions, to do absolutely nothing!”
“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 New Hampshire’s government retirees are being paid not to work and the astronomical accumulation of those payments over an average lifetime. Hundreds of government retirees’ pensions being released today will accumulate to millions of dollars in payouts.”
Tobin continued, “For example, Stephen Tierney, retired from the Manchester municipal government and collects an annual pension of $103,600. His estimated lifetime pension payout is a stunning $2,590,011.*”
“Roger C. Brooks, retired from the Concord government schools, has an annual pension of $91,746, with a staggering estimated lifetime payout of $2,293,659.* ”
“Retired Nashua municipal government employee, Michael P. Buxton, has a lifetime estimated pension payout of $4,278,910*, with an annual pension of $109,716.”
View pension amounts below:

“New Hampshire’s government pensions are in serious trouble with no end in sight. Government employees should be paid a fair wage for the work they do today so they can save for their own retirement. 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 and the retirement age must be raised. Without such reforms, the system will collapse and pensions checks will simply stop coming,” added Tobin.
*Annual pensions are actual amounts provided by the respective fund. Lifetime estimates assume retirement at 60 for non-police and fire and retirement at 45 for police and fire. Uses a life expectancy of 85 (IRS Form 590).

Back to Top

Pensions and Politics as Usual

By on September 25, 2012   /   Latest, Pension Reform  

View release as a PDF
CHICAGO – It’s politics as usual in Chicago, despite growing national attention to the government employee pension crisis, according to the president of one of the country’s largest taxpayer organizations.
“Despite such articles as the Wall Street Journal’s 9/22/2012 ‘Pension Crisis’ proclamation, elected officials here and across the country seem to think the problem will go away if they ignore it,” said Jim Tobin, president of Taxpayers United of America (TUA).
“We have been sounding this alarm here in Illinois and across the country, and yet many, including those in the media, continue to ignore the magnitude of the pension problem.”
“Nearly every community is reaching the tipping point at which services needed today are being sacrificed for payment of services provided in the past.”
“Pension fund payments are squeezing out services, and nowhere is that more apparent than here in Chicago, where bureaucrats are calling for a $5 monthly electric surcharge, aka tax, to hire 700 additional police officers — positions eliminated from the current budget.”
“You might think that the Chicago government teachers’ strike was all about pensions, but no, the city’s mayor, Rahm Emanuel didn’t even try to scale back the bloated teacher pensions. The mayor completely missed the opportunity to work on the problem for his constituents.”
“The country’s state and local government budgets are on the verge of disaster, and here in Chicago, Rahm’s rhetoric provides hot air but no solutions,” said Tobin.
“At least some, like Michael Corkery, of the Wall Street Journal, are able to see through the smoke and mirrors and call attention to the real problem with the budgets: unsustainable government pensions.”
“At every turn, politicians are looking for ways to raise taxes through additional fees and surcharges, but what they aren’t telling taxpayers is that every additional penny goes to pay for pensions that are devouring tax dollars that could have gone for services.”
“Yes, Rahm was blowing smoke when he was quoted as saying, ‘In past negotiations, taxpayers paid more but our kids got less. This time, our taxpayers are paying less, and our kids are getting more.’ Actually, Chicago homeowners will be paying more in real estate taxes, and the government-school teachers, not their pupils, will be pocketing the money.”
“But this isn’t just a Chicago problem, as many would like to believe. Our research of 18 states thus far in our nationwide pension tour reveals that government pension largesse is pervasive and consistent across the country, and very few bureaucrats have the political courage necessary to end unfunded pension liabilities altogether.”

Back to Top

Chicago Homeowners To See Big Property Tax Hikes Due To Government-School Retiree Pensions

By on September 13, 2012   /   Illinois, Latest, Pension Reform  

View release as a PDF
CHICAGO–Not only are Chicago homeowners going to see big increases in their property taxes due to the unconscionable 16% pay raise offered to striking Chicago government-school teachers, but the lavish, gold-plated pensions being paid to retired Chicago government teachers will result in additional hikes in their property taxes, according to Jim Tobin, President of Taxpayers United of Illinois (TUA).
“Chicago homeowners, through their property taxes, are on the hook for the huge salary increases currently being negotiated by the school board and the Chicago Teachers Union,” said Tobin. “But even worse are the extravagant pensions being paid to retired Chicago government-school teachers.”
“Our list of the ‘Top 100’ pensions paid to retired Chicago government-school teachers, ranked by estimated lifetime pension payout, highlights the stunning pensions largely funded by taxpayers — taxpayers who will never collect more than about $22,000 a year from Social Security.”
“Chicago government-school teacher pensions are out of control. These retired bureaucrats are being paid millions to do absolutely nothing. After retirement, most will live for decades, and many will become pension millionaires.”
View the top 100 teacher pensions for Chicago government schools here.
“Heading our list of the ‘Top 100’ Chicago Teacher pensions as of April 4, 2012 is Barbara Eason-Watkins, whose current annual pension is $156,103. Her estimated lifetime pension payout is an incredible $5,973,659.”
“Number two on the list is Miguel Trujillo, whose annual pension is $119,870. His estimated lifetime pension payout is $5,361,206.”
“Even the retiree at the bottom of the ‘Top 100’ list, Daniel Trahey, is raking in the bucks. His annual pension is $116,562, and his estimated lifetime pension is $1,639,699.”
“These retired Chicago government-school teachers are literally becoming pension millionaires by being paid for doing absolutely nothing, courtesy of Chicago homeowners. The Chicago government school pension program is unsustainable, and the property taxes of Chicago homeowners will be raised again and again until they revolt at the polls and throw from office the mayor and city council members who are the tools of the Chicago Teachers Union.”

Back to Top