Brown will save California?

By on May 14, 2012   /   California, Latest, Pension Reform  

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SACRAMENTO— Lucky, lucky California! Today, Governor Brown announced a new budget! He was ‘off’ $16 billion on his last budget. But this time, yes this time, he’s sure he’s got it right! According to Brown, “You can never get it quite right…” No governor, YOU never got even close.
He’s going to cut, cut, cut. And tax, tax, tax. He’s sure that’ll bring more jobs here!
But Governor, why no mention of unsustainable California public pensions that keep digging the hole deeper?
Taxpayers United of America (TUA) and Free and Equal (F&E) today revealed government employee pensions for the Sacramento area. California is the 13th state in a nationwide tour for the two organizations.
“Many government retirees make more in pension payments than private sector taxpayers make in salaries,” stated Christina Tobin, TUA Vice President and Founder and Chair of Free And Equal. “The California economy and the public pension systems are in serious trouble. Taxpayers struggle to save for their own retirement and fund the public pension system. Government retirees should be concerned that their pension payments will continue.”
Tobin continued, “For example, Rickey Martinez, retired Sacramento government employee, collects an annual pension of $210,618. His estimated lifetime payout is $9,477,788. * ”
“Mary M. Carrillo Mejia, retired government teacher, has an annual pension of $195,305, with an estimated lifetime payout of $7,997,727.* ”
“Retired Sacramento County government employee, David Lind, has a lifetime estimated payout of $7,460,967* based on his actual annual pension of $192,790.”
View pension amounts below:

“California’s government pension systems are crushing middle class Californians. Replacing defined benefit pensions for all new government hires 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. We need a stable system that is fair to both taxpayers and beneficiaries or pension checks will stop coming.” Tobin will be attending Thursday’s Pacific Research Institute event that will examine public pensions.
“The pension crisis is the number one budgetary problem for cities, counties and states across the country. A nationwide movement is under way to shift the dialogue to action. We are collaborating with the leaders of pension reform, in working to avert the collapse that will result from inaction. We will be launching our nationwide database for pension and electoral reform in the coming days. This online database will provide a repository of information on elections: the names, the money and the agendas.”
“Many politicians lack the courage to do what’s in the best interest of taxpayers. The many pension groups that have formed, are working to help enhance the citizens’ groundswell that wants true electoral reform.”
*TUA submits FOIA requests for actual pensions. Since personal information is not available, lifetime pension payouts are estimated based on retirement at 55, life expectancy of 85 (IRS Form 590), and 3% COLA.

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Government-Pension Crisis: #1 Budgetary Problem in U.S.

By on May 3, 2012   /   Latest, Pension Reform  

The government-pension crisis is the number one budgetary problem in the U.S., stated the Vice President of Taxpayers United of America (TUA).
“The government-employee pension plans of a number of cities are headed toward default, and these sinking pension plans are the underlying reason why some cities already have declared bankruptcy and why more cities may be staring bankruptcy in the face,” according to Christina Tobin, TUA Vice President and Founder of Free and Equal Elections Foundation.
“For the last year, I have been traveling to different states county-by-county, releasing local government pension amounts. I have seen firsthand the dire financial situation that is occurring in cities and counties across the country.”
“Reuters noted that so far in 2012, there have been 21 municipal defaults totaling $978 million, versus 28 defaults totaling $522 million for the same period in 2011,” said Tobin.
“A number of US cities have filed for bankruptcy, the most prominent of which is the city of Vallejo, once the capital of California. Municipalities that have either filed for bankruptcy or are just emerging from it include Central Falls, Rhode Island, Harrisburg, Pennsylvania, Boise County, Idaho, and Jefferson County, Alabama.”
“According to the San Francisco Examiner, leaders of Pritchard, Alabama, a city on the outskirts of Mobile, had known since 2004 that the pension fund was scheduled to run dry in 2009. Officials tried to declare bankruptcy, but state law forbids a town from ducking its pension obligations. The city just stopped paying its pensions. Pritchard’s 150 retired city employees were reduced to showing up at City Council meetings begging for money to make it through the Christmas season.”
“As of December 2010, America’s public pensions were underfunded by an estimated $3.6 trillion. The pension problem might be worse than figures suggest, because many cities and states are either ignoring the problem or actively trying to conceal it.”
“It’s now judgment day for the lavish, gold-plated city and municipal government pensions,” said Tobin. “Many retired government employees receive pensions that are higher than salaries in the private sector. Government pension plans are hemorrhaging dollars.”
“According to the Chicago Sun-Times, Pritchard stands as a warning to cities like Philadelphia and states like Illinois, whose pension funds are under great strain.”
“The way to fix the broken pension system is to replace pensions for all new government hires with social security and 401(k)s, and increase current employee contributions,” said Tobin. “The current crop of Republicans and Democrats won’t do it—they’re controlled by corporate and union interests. We need a national movement of Americans from across the political spectrum who will unite and throw them out of office. Then, we will get meaningful pension reform.”

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For REALLY Big Bucks, Try the State University System

By on April 30, 2012   /   Illinois, Latest, Pension Reform  

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CHICAGO–The most outrageous pensions in all the Illinois state pension funds are to be found in the State University Retirement System (SURS), according to Jim Tobin, President of Taxpayers United of America (TUA).
“If you want to see why the pension funds in Illinois are lurching toward insolvency, look no further than the State University Retirement System,” said Tobin. “The pensions are so mind-boggling that if I didn’t have our list of the Top 100 SURS pensions, no one would believe it.”
Click here to download the Top 100 SURS pension amounts (PDF). “The highest of the ‘Top 100’ list again is Tapas Das Gupta, of the University of Illinois-Chicago, whose annual pension is an absolutely astounding $426,885 (as of 4/1/12). Each month he pulls in $35,574. His monthly pension is about the same as the median full-time annual wage in Illinois, which is $35,256.”
“Since 1/1/98, Gupta’s total pension payout is $3,001,481.”
“Number two on the Top 100 list is Edward Abraham, also of the University of Illinois-Chicago. His annual pension is $414,709. That’s $34,559 each month. Since 1/1/98, Abraham has collected a total pension payout of $1,979,314.”
“Number three on the Top 100 list is Riad Barmada, also of the University of Illinois-Chicago. His annual pension is $397,919 — $33,160 a month. His total pension payout since 1/1/98 is an astronomical $4,627,975 — the highest total pension payout of the Top 100 SURS pensions.”
“Who says teachers are underpaid?”
“The way to fix the broken pension system is to replace pensions for all new government hires with social security and 401(k)s, and increase current employee contributions. This is the only way to eliminate the unfunded liabilities that plague taxpayers.”
“In addition, voters should kick all Springfield Democrats out of office on November 6, 2012. They are the ones who approved the temporary 67% state income tax surcharge, all of which is being put into the state pension programs.”
This release is the third in a series. To see the first, click here: Pension Millionaires Draining Lifeblood from TRS Pension Fund. For the second, click here: State Troopers & Corrections Officers Quick to Capture Lavish Pensions.

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