Sunday, February 27, 2011

San Diego Union-Tribune Watchdog highlights this question: "Should there be any pension for [teacher] retirees?"

Clearly, Les Birdsall of San Diego is not interested in attracting the best and brightest to work as teachers in San Diego. Since teachers don't pay for, or receive, Social Security benefits, Mr. Birdsall seems to be asking if retired teachers should perhaps live in homeless shelters and collect food stamps. Why would the SDUT Watchdog print such a silly comment while at the same time failing to investigate costly shenanigans of insurance companies and lawyers at the San Diego County Office of Education? Has the Watchdog received any rabies shots? Is it mad?

See Slaying the Mythical Tax-Fattened Hog regarding public sector pay.


Educator pensions report raised questions
“The average education pension in $40,663. Is this too high?“
By Maureen Magee
SAN DIEGO UNION-TRIBUNE
January 31, 2011

Underfunded public pensions have made big headlines in San Diego and elsewhere, igniting a debate over the cost of retirement packages that often pits taxpayer groups against public employees, with the public somewhere in the middle.

A recent report by The Watchdog on educator pensions contributed to the debate. Some readers wrote to raise questions and voice their views — from outrage over what they call excessive pensions to sympathy for public employees whose retirement packages they believe have been unfairly called into question.

Mary Jean Word, a retired San Diego teacher, objected to our report claiming the educator pension system, like other public funds, offers “high benefits with no clear way to pay them.” She said the broad brush was unfair to those on the lower end.

“Do not include administrators with teachers,” said Word, who retired with 25 years service credit in California and receives an annual pension of $24,000. “They do not teach 20 to 150 students a day.”

Public educators from counselors to superintendents pay into the California State Teachers Retirement System. The program does not classify them by position, however, so separate data analysis was not possible. Although the top pension for a retired San Diego County educator is $281,034, the average retired educator in the county takes home just over $40,000 annually.

Much of the response to our story centered around whether that is a high number. For perspective, recent U.S. Census Bureau estimates show the average person of retirement age receives about $19,000 from retirement, pension and/or Social Security benefits.
Teacher fund status

Jim Wirt of San Diego wanted to know more about the state of the teacher pension fund. “You could have at least mentioned that CalSTRS assets have fallen...”

The fund reported good news last month when it posted 12.7 percent investment returns for 2010, raising its portfolio to $146.4 billion. The fund peaked at $180 billion in 2007 and had fallen to $112 billion in early 2009.

Even so, the system is expected to go broke by 2045 unless contributions are increased by the state, school districts and California educators. Officials say the fund needs a 15 percent hike in employer contributions this year. Only the state Legislature has the authority to approve such an increase. Since the state faces a $20 billion budget deficit, many say it’s unlikely to happen this year.
Who’s to blame?

Marty McGee of La Jolla wants to know how California got into this mess. She wrote, “In order for your watchdog reports to lead to meaningful changes, the people need to know who did it.”

Some of the blame goes to California voters.

“A little-known ballot measure a quarter century ago, Proposition 21 in 1984, opened the door for much of the current controversy over California’s public employee pensions,” former Union-Tribune reporter and pension expert Ed Mendel wrote last year. The measure passed with 53 percent of the vote.

Before Proposition 21, pension funds had been required to put most of their money into bonds. The ballot measure allowed pension funds to shift most money to stocks and other riskier investments. Some have said that public pensions would be more manageable today if the funds had stuck with safer investments.

Other changes to CalSTRS have also contributed to the funding gap.

In an effort to address teacher shortages and convince veteran educators to put off retirement, CalSTRS benefits were sweetened about a decade ago under AB 1509, legislation sponsored by Mike Machado, D-Stockton.

To fund the added benefits, the legislation took a fourth of the money teachers had been contributing to their pensions and used it to seed the added benefit. The teachers no longer pay into the supplemental benefit fund, but they draw from it.
What about Social Security?

Tom Helmantoler, a retired Julian High School teacher, asks this: “What about Social Security? Why can’t someone who has qualified for Social Security in the private sector turn to teaching as a second career and keep the Social Security benefit they earned?”

More than two decades before the Social Security Act was signed, the Teachers’ Retirement Law took effect in California in 1913. Public educators decided to continue to opt out of Social Security in 1955 because CalSTRS offered better benefits. California teachers do not pay into Social Security while they pay into CalSTRS. But some have paid enough toward Social Security to qualify for the benefit from other jobs. Those retired educators see a significant reduction in Social Security benefits under a law designed to prevent double-dipping. Similarly, retired educators who qualify for Social Security as the spouse or widow/widower of a worker who was covered by Social Security also see a reduction in that benefit under the law.

Should taxpayers contribute anything?

Les Birdsall of San Diego asked broader, philosophical questions. “The story tells us the average education pension in $40,663. Is this too high? What would be a reasonable pension? Should there be any pension for retirees?”

Alicia Munnell, director of the Center for Retirement Research at Boston College, said governments must compete with private sector salaries and benefits or it will not attract a qualified work force. And that means offering a decent retirement.

“It’s very easy to say that public sector defined benefit programs are more generous than what most people get in the private sector,” she said. “But it’s really hard to say.”

The military/media attacks on the Hastings article

Feb 27, 2011
The military/media attacks on the Hastings article
By Glenn Greenwald
Salon.com

Last June, when Rolling Stone published Michael Hastings' article which ended the career of Obama's Afghanistan commander, Gen. Stanley McChrystal -- an article which was just awarded the prestigious Polk Award -- the attacks on Hastings were led not by military officials but by some of Hastings' most celebrated journalistic colleagues. The New York Times' John Burns fretted that the article "has impacted, and will impact so adversely, on what had been pretty good military/media relations" and accused Hastings of violating "a kind of trust" which war reporters "build up" with war Generals; Politico observed that a "beat reporter" -- unlike the freelancing Hastings -- "would not risk burning bridges by publishing many of McChrystal’s remarks"; and an obviously angry Lara Logan of CBS News strongly insinuated (with no evidence) that Hastings had lied about whether the comments were on-the-record and then infamously sneered: "Michael Hastings has never served his country the way McChrystal has." Here's Jon Stewart last year mocking the revealing media disdain for Rolling Stone and Hastings in the wake of their McChrystal story.

* Continue reading

Hastings has now written another Rolling Stone article that reflects poorly on a U.S. General in Afghanistan. The new article details how Lt. Gen. William Caldwell "illegally ordered a team of soldiers specializing in 'psychological operations' to manipulate visiting American senators into providing more troops and funding for the war" and then railroaded the whistle-blowing officer who objected to the program. Now, the same type of smear campaign is being launched at Hastings as well as at his primary source, Lt. Col. Michael Holmes: from military officials and their dutiful media-servants.

Ever since publication of this new article, military-subservient "reporters" have disseminated personal attacks on Hastings and his journalism as well as on Holmes and his claims, all while inexcusably granting anonymity to the military leaders launching those attacks and uncritically repeating them.

As usual, anyone who makes powerful government or military leaders look bad -- by reporting the truth -- becomes the target of character assassination, and the weapon of choice are the loyal, vapid media stars who will uncritically repeat whatever powerful officials say all while shielding them from accountability through the use of anonymity...

Sunday, February 20, 2011

San Diego Union-Tribune Watchdog highlights this question: "Should there be any pension for [teacher] retirees?"

Clearly, Les Birdsall of San Diego is not interested in attracting the best and brightest to work as teachers in San Diego. Since teachers don't pay for, or receive, Social Security benefits, Mr. Birdsall seems to be asking if retired teachers should perhaps live in homeless shelters and collect food stamps. Why would the SDUT Watchdog print such a silly comment while at the same time failing to investigate costly shenanigans of insurance companies and lawyers at the San Diego County Office of Education? Has the Watchdog received any rabies shots? Is it mad?

See Slaying the Mythical Tax-Fattened Hog regarding public sector pay.


Educator pensions report raised questions
“The average education pension in $40,663. Is this too high?“
By Maureen Magee
SAN DIEGO UNION-TRIBUNE
January 31, 2011

Underfunded public pensions have made big headlines in San Diego and elsewhere, igniting a debate over the cost of retirement packages that often pits taxpayer groups against public employees, with the public somewhere in the middle.

A recent report by The Watchdog on educator pensions contributed to the debate. Some readers wrote to raise questions and voice their views — from outrage over what they call excessive pensions to sympathy for public employees whose retirement packages they believe have been unfairly called into question.

Mary Jean Word, a retired San Diego teacher, objected to our report claiming the educator pension system, like other public funds, offers “high benefits with no clear way to pay them.” She said the broad brush was unfair to those on the lower end.

“Do not include administrators with teachers,” said Word, who retired with 25 years service credit in California and receives an annual pension of $24,000. “They do not teach 20 to 150 students a day.”

Public educators from counselors to superintendents pay into the California State Teachers Retirement System. The program does not classify them by position, however, so separate data analysis was not possible. Although the top pension for a retired San Diego County educator is $281,034, the average retired educator in the county takes home just over $40,000 annually.

Much of the response to our story centered around whether that is a high number. For perspective, recent U.S. Census Bureau estimates show the average person of retirement age receives about $19,000 from retirement, pension and/or Social Security benefits.
Teacher fund status

Jim Wirt of San Diego wanted to know more about the state of the teacher pension fund. “You could have at least mentioned that CalSTRS assets have fallen...”

The fund reported good news last month when it posted 12.7 percent investment returns for 2010, raising its portfolio to $146.4 billion. The fund peaked at $180 billion in 2007 and had fallen to $112 billion in early 2009.

Even so, the system is expected to go broke by 2045 unless contributions are increased by the state, school districts and California educators. Officials say the fund needs a 15 percent hike in employer contributions this year. Only the state Legislature has the authority to approve such an increase. Since the state faces a $20 billion budget deficit, many say it’s unlikely to happen this year.
Who’s to blame?

Marty McGee of La Jolla wants to know how California got into this mess. She wrote, “In order for your watchdog reports to lead to meaningful changes, the people need to know who did it.”

Some of the blame goes to California voters.

“A little-known ballot measure a quarter century ago, Proposition 21 in 1984, opened the door for much of the current controversy over California’s public employee pensions,” former Union-Tribune reporter and pension expert Ed Mendel wrote last year. The measure passed with 53 percent of the vote.

Before Proposition 21, pension funds had been required to put most of their money into bonds. The ballot measure allowed pension funds to shift most money to stocks and other riskier investments. Some have said that public pensions would be more manageable today if the funds had stuck with safer investments.

Other changes to CalSTRS have also contributed to the funding gap.

In an effort to address teacher shortages and convince veteran educators to put off retirement, CalSTRS benefits were sweetened about a decade ago under AB 1509, legislation sponsored by Mike Machado, D-Stockton.

To fund the added benefits, the legislation took a fourth of the money teachers had been contributing to their pensions and used it to seed the added benefit. The teachers no longer pay into the supplemental benefit fund, but they draw from it.
What about Social Security?

Tom Helmantoler, a retired Julian High School teacher, asks this: “What about Social Security? Why can’t someone who has qualified for Social Security in the private sector turn to teaching as a second career and keep the Social Security benefit they earned?”

More than two decades before the Social Security Act was signed, the Teachers’ Retirement Law took effect in California in 1913. Public educators decided to continue to opt out of Social Security in 1955 because CalSTRS offered better benefits. California teachers do not pay into Social Security while they pay into CalSTRS. But some have paid enough toward Social Security to qualify for the benefit from other jobs. Those retired educators see a significant reduction in Social Security benefits under a law designed to prevent double-dipping. Similarly, retired educators who qualify for Social Security as the spouse or widow/widower of a worker who was covered by Social Security also see a reduction in that benefit under the law.

Should taxpayers contribute anything?

Les Birdsall of San Diego asked broader, philosophical questions. “The story tells us the average education pension in $40,663. Is this too high? What would be a reasonable pension? Should there be any pension for retirees?”

Alicia Munnell, director of the Center for Retirement Research at Boston College, said governments must compete with private sector salaries and benefits or it will not attract a qualified work force. And that means offering a decent retirement.

“It’s very easy to say that public sector defined benefit programs are more generous than what most people get in the private sector,” she said. “But it’s really hard to say.”