Ryan pension plan right for taxpayers?
Big unions push back
- Duration 8:25
- Date Aug 18, 2012
Big unions push back
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Vice presidential candidate Paul Ryan firing up crowds about reforming government spending programs.
But public unions firing back.
That is Medicare plan about a plan to make government workers kicked in -- for their retirement.
So taxpayers can pay less.
And that pension by -- as we're finding out thousands of federal retirees are collecting six figures in their golden years.
So with a -- and pension plan the right plan for taxpayers hi everyone I've read about Eric this is a sad day -- And he -- are the Bulls and Bears this week we've got Gary B Smith Tobin Smith Jonas Max Ferris.
Along with Todd Jones -- and Sarah flowers -- everybody okay Todd lets it go on the Ryan pension fix the right fix for.
-- -- Well it is -- but it's also the responsible plan look you're looking at a 21000.
They're receiving a pension a lifetime pension.
In a six digit range and many are actually receiving as much as 200000 hours.
What's that mean for taxpayers -- look at at a two trillion dollar shortfall we have to fill the gap and that's what Ryan is coming out with that's always -- he's doing the responsible fiscal thing.
Please get a lot of.
Backlash where it.
But -- to be fair the average.
Pension is closer -- like 35000.
Dollars and and and federal workers are already have a pay freezes this fair.
Here's how it's not fair we're talking about five point 4%.
Effective pay -- for per average workers.
Four people for for some of us that may not sound like a lot but just somebody who's making the average federal salary which is less than 70000 dollars.
We're talking about thousands of dollars.
That aren't going back into our economy that's school supplies not being -- that's new computer not being -- that's money not going into the economy.
Which is bad for -- -- Carrie -- Well as there is absolutely right if were just talking about salaries unfortunately we're not we're talking about pensions.
And pensions for the public sector like for like job compared to the private sector.
Are almost 50% more we now have five few trillion dollars -- forget the exact amount two trillion dollars.
Of unfunded pension liability at the federal government level so clearly the math says that asking.
Federal employees to kick in.
What amounts to another 5% I don't think is unfair considering their pensions are 50% larger than what you get the private sector.
But let's look at that in comparison to the rest of their compensation.
Federal employees make less than they.
It's been similarly skilled people could and the public -- there are also people like our DEA agents that keep us all safe.
Fire and police -- Go ahead.
This is Sarah I've distilled.
Yup that's that's a very nice about it maybe they'll gobbled up like ten years ago.
But but if you actually look at the numbers over the last 36 months.
Other than lawyers and judges every judges could make more money is -- priced lawyer almost every side.
Is it a higher rate and Gary's point is and yet that includes salaries and pension because the pension plan -- so gilded.
Now look at.
This idea of have actually tried to -- somewhat of -- in -- with are out go in with our liabilities.
It's something that we've not had to do because we could just borrow trillions in transit -- dollars a plugged all well that time is coming to an end.
And -- this is the ultimate responsibility which makes me you know follow this guy to actually bring this point out.
Okay Smart choice seat Janis -- in there and it sounds like a lot to sell 20000 federal workers six -- pensions but that's actually a really small fraction of the giant federal workforce you know lot of doctors aware for the federal government yet they got they make money they get high tension is not that outlandish that -- -- that.
In general there's a lot there's a lot of pension underfunding in America and the federal level on the state level.
-- on the right level and taxpayers on the hook for all of it one way or the other so all of these pensions across the board including federal.
Need more money going into them -- they're not earning enough money this person private ones to make good in the taxpayers are there so everyone's got a kick a little more take -- pick at whatever to shore -- these pensions.
Including -- workers and -- actually the private sector is is facing us this problem as well and companies have their own solutions progress that's right they just simply buy out the employee and and look at some much cheaper around component for for a businessman.
Actually buy out his current employees rather than having to face a lifetime amount of money that they have to keep spending only because people continue to live longer plus -- -- health care costs.
You know think about it does the federal government on these pension -- and and you were talking about billions of dollars seventy billion dollars a year that actually we have the find actually keep the pension money -- pension account up there thirteen billion just an added health care costs.
This is a continued epidemic for the federal government because it continues to expand.
You've seen -- the last four years which is continue to borrow and expand and this is this is the resolve this is what we have to do right now.
Well -- everyone you know the the point is a -- wanna -- that everybody is making sacrifices why not then federal workers.
Because these are simply the way they're lined out -- the Ryan plan.
Not fair to to leave the workers and they're not an apples to oranges apples comparison when you look let's not -- Barack again.
When you look at 70%.
-- -- of those currently enrolled in pension plan they're in the old style of the pension plan which means they don't get Social Security benefits.
And that the way a private sector worker what it's it's not a one -- one can well it's not a policy and its Social Security is in going to be around the go ahead go ahead but it's.
Not -- I have.
The book but let's that I would opt out if I BI just opt out of being a bit of Medicare -- social security and -- -- the government planned all my lord I did the government plan any day of the week.
The other part that you're missing I -- here is that.
We we can go out and -- a hundred year bond and buyout these guys.
And 2% interest rates -- -- for barring that money because that money would save us maybe two or five trillion dollars.
A year as we get to the maturing point we could do -- like private senator I did -- was certain it'll -- apparently there's even better idea why not now get Gary be Gary -- had.
Well I I.
I think its interest in that the -- all along has made the arguments that quote quote unquote millionaires and billionaires should pay their fair share.
And a bomb -- asking for what another four point 5% from not.
From the -- percent of the population is in that but when now when it comes to the other side -- the point -- asking these.
-- rich pensioners and that's what they are these government employees to kick in -- Are all the -- and that's not fair so I I.
I don't think you can have a both wise.
-- Janet Jonas are they really rich pensioner it's less than 2% of publicist -- -- -- -- Social Security number one not so crazy huge pension and everybody else like give you reduced your pension private sector for whatever reason bankruptcy.
Union stuff you still under social security -- come like cannot have that and then take navigate on your federal pension is kind of a double in some ways could that was your only pension.
This whole buyout concept sounds good on paper but when you pull -- off front about some as pension up off of them returns a lump sum payment.
All the people that like smoking and bad health and -- gonna die younger than actuary dates are gonna come -- and take the lump sum which means it could cost the government more.
Does that help people stay in the long -- -- -- -- -- a lot of the -- that there it is not our greatest way out of these plans are taught in the private sector we will love -- -- these types of pensions but they don't exist anymore the years of getting the gold watching getting a great -- just don't exist here in the federal government you can take any data you want.
And your guaranteed money look.
The fact that the -- saying that this is Jennifer talked about a pay cut here five point 4% for Sarah sect that when the money back into into -- -- painter actually contributing to their future.
That's just like I say I -- five self employed businessman.
Put -- money to their Social Security but ally to the federal workers' fault that the private workers lost their pensions and got -- from -- -- if you've noticed.
Another thing John is but I have the -- well.
-- talk about millionaires.
If -- a million dollars in the bank today in the best CD rate your -- 40000 a year write these people are -- paying on average seventy many time 120000.
That's like having three or four million dollars cash money in the bank.
-- new CD so come on these guys are absolutely millionaires -- -- that's going to be the last word thanks guys.