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diverdog
9/29/2011, 09:35 AM
Our buddies on this board who work for the Federal Government are going to start taking hits. Military retirement cost now exceed military pay cost.

http://www.usatoday.com/news/washington/story/2011-10-11/federal-retirement-pension-benefits/50592474/1
(http://www.usatoday.com/news/washington/story/2011-10-11/federal-retirement-pension-benefits/50592474/1)


The federal government hasn't set aside money or created a revenue source similar to Social Security's payroll tax to help pay for the benefits, so the retirement costs must be paid every year through taxes and borrowing.The government paid a record $268 billion in pension and health benefits last year to 10 million former civil servants, military personnel and their dependents, about $100 billion more than was paid a decade earlier after adjusting for inflation. And $7 billion more was deposited into tax-deferred accounts of current workers.

STORY: Military retirees say benefits hard-earned (http://www.usatoday.com/news/military/story/2011-10-11/military-retire-benefits/50593626/1)
In addition, the federal government last year made more than a half-trillion dollars in future commitments, valued in 2010 dollars that will cost far more to pay in coming decades. Added last year:
•$107 billion in retirement benefits accumulated by current workers.
Rapid increaseFederal civilian and military retirement costs have increased dramatically since 2000 (billions, inflation-adjusted 2010 dollars):
Source: USA TODAY analysis of government reports




•$106 billion in new benefits granted to veterans.
•More than $300 billion in the snowballing expense of previous retirement promises that have no source of funding.
In all, the government committed more money to the 10 million former public servants last year than the $690 billion it paid to 54 million Social Security beneficiaries.
The retirement programs now have a $5.7 trillion unfunded liability, compared with a $6.5 trillion shortfall for Social Security. An unfunded liability is the difference between a program's projected costs and its projected revenues, both valued in today's dollars.
USA TODAY's analysis is the first comprehensive calculation of how much the government spends on benefits for retired federal workers. The $275 billion paid last year — roughly two-thirds cash, one-third medical benefits — are spread over dozens of overlapping programs in many departments and agencies.

OhU1
9/29/2011, 10:34 AM
Middle class entitlement riots are coming to the U.S just like in Greece and France when cuts were made. The French, being French, cannot riot much past 2 PM and they surrender quickly of course. But many of our guys have guns and military training! Could get ugly.

badger
9/29/2011, 10:51 AM
Perhaps our life expectancy will suddenly drop and the people entitled to their benefits will just not be able to collect on them. Or perhaps, the government can quickly outlaw gun use, install an early curfew and hope for the best :(

sappstuf
9/29/2011, 10:58 AM
Perhaps our life expectancy will suddenly drop and the people entitled to their benefits will just not be able to collect on them. Or perhaps, the government can quickly outlaw gun use, install an early curfew and hope for the best :(

I've started walking around the neighborhood knocking on doors. Anyone who answers and is over the age of 60, I hand them my pistol and ask them to do the "honorable" thing...

badger
9/29/2011, 11:22 AM
Well, it's not just the old folks. I mean, when pension people die, don't their benefits pass on to their spouse usually? And if they have kids, can't they also be named as beneficiaries?

Perhaps the government needs to add to the list:

1- Outlaw guns
2- Early curfew
3- Pensions only go to the person that earned it. Not a family member. No exceptions.

Not saying it'll solve anything, but the government is already sitting back and hoping for the best, heh. :(

sappstuf
9/29/2011, 11:38 AM
Well, it's not just the old folks. I mean, when pension people die, don't their benefits pass on to their spouse usually? And if they have kids, can't they also be named as beneficiaries?

Perhaps the government needs to add to the list:

1- Outlaw guns
2- Early curfew
3- Pensions only go to the person that earned it. Not a family member. No exceptions.

Not saying it'll solve anything, but the government is already sitting back and hoping for the best, heh. :(

For military retirement there is a Survivor Benefit Plan that pays the spouse up to 55% of the original retirement pay or to surviving children up to the age of 22 if unmarried and full time student..

So there would be an instant 45% savings... And it would only cost us our soul... :)

badger
9/29/2011, 11:42 AM
Hmm... I think the government would prefer 100 percent savings so they can pork barrel it in a bridge to somewhere. They already have one to nowhere, after all :P