Pensions Revisited

MoonHowler

There has been an on-going discussion here on Moonhowlings.net about pensions and other retirement plans.  Some people here are very much oppose to any plans that are from money in  the public coffers.  I asked the serious question if those who oppose plans like VRS, Federal Retirement Programs, etc also oppose military retirement.  To date, no one has answered me. 

Last Sunday, the New York Times  featured a section on pensions entitled, In Budget Crisis, States Take Aim at Pension Costs.

Many states are acknowledging this year that they have promised pensions they cannot afford and are cutting once-sacrosanct benefits, to appease taxpayers and attack budget deficits.

Illinois raised its retirement age to 67, the highest of any state, and capped the salary on which public pensions are figured at $106,800 a year, indexed for inflation. Arizona, New York, Missouri and Mississippi will make people work more years to earn pensions. Virginia is requiring employees to pay into the state pension fund for the first time. New Jersey will not give anyone pension credit unless they work at least 32 hours a week.

“We can’t afford to deny reality or delay action any longer,” said Gov. Pat Quinn of Illinois, adding that his state’s pension cuts, enacted in March, will save some $300 million in the first year alone.

But there is a catch: Nearly all of the cuts so far apply only to workers not yet hired. Though heralded as breakthrough reforms by state officials, the cuts phase in so slowly they are unlikely to save the weakest funds and keep them from running out of money. Some new rules may even hasten the demise of the funds they were meant to protect.

Lawmakers wanted to avoid legal battles or fights with unions, whose members can be influential voters. So they are allowing most public workers across the country to keep building up their pensions at the same rate as ever. The tens of thousands of workers now on Illinois’s payrolls, for instance, will still get to retire at 60 — and some will as young as 55.

One striking exception is Colorado, which has imposed cuts on its current workers, not just future hires, and even on people who have already retired. The retirees have sued to block the reduction

Some of the states mentioned have really cushy pensions. Virginia’s pension, the VRS, is rather modest but livable. The rub with the VRS is that back in the early 80’s most individuals had their pension paid by the state or the locality. That happened in leiu of giving pay raises. (see the history of VRS)

The VRS is actually mandated by the Constitution of Virginia.  The history also explains the following:

House Joint Resolution 392 of the 1993 General Assembly Session requested the Joint Legislative Audit and Review Commission (JLARC) to complete a comprehensive study of VRS. The study concluded:

  • VRS should be established as an agency independent of the executive branch of Virginia government.
  • The appointment of trustees should be a shared responsibility of the Governor and the General Assembly.
  • The VRS trust funds should be established as independent trusts in the Constitution of Virginia.
  • The structure of VRS advisory committees should be established in law.
  • The General Assembly should designate a permanent legislative commission or committee to carry out continuing oversight of the retirement system.

This series of changes to the Virginia Constitution and the VRS enabling statutes occurred in 1995 and 1996. The Constitution of Virginia (Article X, Section 11) now requires the General Assembly to maintain “…a retirement system for State employees and employees of participating political subdivisions. The funds of the retirement system shall be deemed separate and independent trust funds, shall be segregated from all other funds of the Commonwealth, and shall be invested and administered solely in the interests of the members and beneficiaries thereof.” Today, this includes 237 state agencies, 249 counties, cities and towns, 183 special authorities and 145 school boards. As of June 30, 2009, VRS had nearly 347,000 active members and more than 141,000 retirees and beneficiaries.

Back to the military question:  Do those who want to get rid of pensions and retirement for public servants also want to get rid of military retirement?   Freedom is not only preserved by fighting our enemy.  It is also peserved by knowing how to read and write, and by being able to walk your streets without being killed by domestic enemies we often call thugs.  Freedom is knowing that we have first responders to keep us safe. 

All are important members of society who deserve to have their pensions kept intact without meddling and without the proverbial hands in the cookie jar.  After reading the above, I am not even sure what Virginia did was legal.

McChrystal Pulls a McArthur

MoonHowler

 

General McChrystal has stepped  on the old McArthur Land Mine. His ego apparently got bigger than his brain.  He ran his mouth when and where he shouldn’t have. 

 General McChrystal has been called home for an apparent trip to the woodshed with his Commander-in-Chief, President Obama.  Why is McChrystal getting an ass whupping?  He has been increasingly outspoken against the current administration.  There is  an interview in Rolling Stone Magazine that the administration simply cannot ignore.  The article is not yet available.  Many say his remarks border on violating military law.  

According to the Washington Post:

KABUL — The top U.S. general in Afghanistan was summoned to Washington for a White House meeting after apologizing Tuesday for flippant and dismissive remarks about top Obama administration officials involved in Afghanistan policy.

The remarks in an article in this week’s in Rolling Stone magazine are certain to increase tension between the White House and Gen. Stanley A. McChrystal.

The profile of McChrystal, , titled the “Runaway General,” also raises fresh questions about the judgment and leadership style of the commander Obama appointed last year in an effort to turn around a worsening conflict.

McChrystal and some of his senior advisors are quoted criticizing top administration officials, at times in starkly derisive terms. An anonymous McChrystal aide is quoted calling national security adviser James Jones a “clown,” who remains “stuck in 1985.”

Referring to Richard Holbrooke, Obama’s senior envoy to Afghanistan and Pakistan, one McChrystal aide is quoted saying: “The Boss says he’s like a wounded animal. Holbrooke keeps hearing rumors that he’s going to get fired, so that makes him dangerous.”

On one occasion, McChrystal appears to react with exasperation when he receives an e-mail from Holbrooke, saying, “Oh, not another e-mail from Holbrooke. I don’t even want to read it.”

U.S. ambassador to Afghanistan Karl Eikenberry, a retired three-star general, isn’t spared. Referring to a leaked cable from Eikenberry that expressed concerns about the trustworthiness of Afghan President Hamid Karzai, McChrystal is quoted as having said: “Here’s one that covers his flank for the history books. Now if we fail, they can say, ‘I told you so.'”

Not good, McChrystal, not good.  Remember General McArthur?  Harry Truman?  Don’t (%$^&*) with the Big Dog.

McChrystal also took a few swipes at the VP (WaPo):

The story also features an exchange in which McChrystal and some of his aides appear to mock Vice President Biden, who opposed McChrystal’s troop surge recommendation last year and instead urged instead for a more focused emphasis on counter-terrorism operations.

“Are you asking me about Vice President Biden?” McChrystal asks the profile’s reporter a at one point, laughing. “Who’s that?”

“Biden?” an unnamed aide is quoted as saying. “Did you say Bite me?”

Not wanting to leave any stones unturned, McChrystal also criticized the French and one of his aids made a gay remark or two.   There is no such thing as free speech in the military.  It is also against the code of military justice to criticize one’s superiors publically, especially the high profiled ones like the Commander-in-Chief. 

Will McChrystal be fired?  Will he have a new desk job in Tampa?  He is a very popular general with great troop support.  This puts the administration in a very tenuous position.  who will blink first.  Is anyone taking bets?