Spouting Off

OK - forgive me - but I just have to say this.

Are you watching 60 Minutes? We are. We never miss it.

One of the segments is on the growing crisis facing State's across the country - many in dire straits. California is among them.

The Governor of New Jersey was spouting off about how the real issue is the growing obligation of state pension funds - and insists that people who have pensions should be forced to give them up. "Who has pensions these days?", he stated.

Before everyone jumps on the band wagon of blaming your local teacher, or other school employees or State workers - know this about how State 'pensions' work.

I put 7% of my salary into our State's pension fund. That is money I MUST contribute - I cannot opt out. My employer matches that dollar for dollar - so my school district has to use part of it's funding to fund my retirement. And my employer is actually forced to pay a few percentage points MORE than I am. All together, between me and my employer, a combined 16.3% of my salary is sent to the state EVERY SINGLE MONTH. The employee and employer make these payments to the state every single paycheck. Teachers do too, and in fact, the payment for teachers is a little more than for me.

So before everyone assumes that these pensions are 'State money' being given away to people - they are not. They are funded by the employees and the various employers - and the State is responsible for investing those monies into investments that have long-term gains guaranteed to fund the pension benefits we will be entitled to when we retire. When you hear a State say they can't fund their pensions - it's because someone at the State failed at their job: failed to invest the funds and keep them safe and growing to fund retirements as they happen. That's not the fault of the employees or employers. It's the fault of the State.

It fries me no end to hear people complain about State pensions. My responsibilities would earn me double what I'm making if I were to find a comparable job in the corporate world. And I'd make a contribution to a 401k and my employer would hopefully match it - similar to the fund I contribute to now. The only difference is: I know exactly what my monthly payments will be when I retire. Unlike 401K's, when I die, my heirs receive nothing. Other than my 7% - which I could withdraw in a lump sum if I'm willing to forfeit any monthly benefit - I am not entitled to any of my employer's contribution. As people move out of the jobs, the payments their employers have made stay to fund the retirement of other people. Employers get none of their contributions back EVER. And their employees never benefit either if they leave the system - they take what they've contributed only and their employer's contributions stay and are not refunded.

It's not the fault of the individuals receiving the pensions that the State's are in dire financial straits and can't fund all their expenses. State government needs to quit whining and fix the problem: balance the budget and stop spending money they don't have for things they can do without. Our state is making some big changes in how education is funded - and while these changes are (still, for the moment) temporary and set to expire in a couple years, we're hopeful they will retain them long term. Changing the funding has eliminated some jobs at the State level - which isn't great - but it is a reduction in expense which the State desperately needs to do.

All of the above is in the most simplistic terms and I realize everything is a heck of a lot more complicated than this post. But don't threaten the retirements of millions of people across the country because someone convinces you THAT will solve the issues. It won't. It will only add to them. People who work in the public sector make that choice for a variety of reasons - and many have been in the public sector their entire careers. So to renege on their retirement would be wrong.

OK - enough politics and stuff.

Day 2 of vacation. Ran errands yesterday. Today, stayed home. Made home made beef noodle soup. We met with one of B.'s friends selling Cutco knives (which I've been coveting for a long time) and Santa brought me and J. a present - a beautiful set of knives that are amazing and will last our entire lives and the lives of the boys. They will probably be fighting over them when we're gone. (Though I'm planning to get them each a set as a wedding present). I'm really enjoying doing more cooking and having good tools to use will greatly help me. Encourage me to try new things. It's also great to help a college kid make some money so he can now enjoy his winter break - he'll be able to take a week or two off now since he made a good sale and gets a good commission.

Still have 14 days off ahead. I'm struggling to sleep in mornings....this morning, woke up at 3:30, 4:30, 6:00 and finally up just after 7. It's hard to stay asleep....and honestly, shifting my sleep to going to bed later and getting up later will only totally mess me up for WEEKS when work starts again. Which it will....so better to try to stay 'normal' as much as I can. It's great not setting any alarm....love that. And if I can easily go back to sleep, I will...but forcing myself to stay asleep is not working too well.

I'm planning to make home made whole wheat bread and get dough ready for cinnmon rolls on Christmas morning. It will be quiet and quick. I need to get scavenger hunt clues ready. I'm trying so hard not to just buy a bunch of stuff for under the tree. I've got a few things but not much - and I really don't want to spend money for things they don't care about. But it's hard - though I know they will be excited about having money. Especially H. 'cuz he really wants to get a car stereo for his car. And B. really wants a new phone. His died and he's using mine (swapped chips). So they'll have the cash they need to get what they want - and just not much to unwrap under the tree.