I am tired of reading about our failing pension programs and the political solutions to the problem. Lets get things straightened out. The pension problems are the result of activities by elected officials, it is not a new problem and the blame has to be shared by all levels of government. The pensioners contributed their portion to the program each payday. The various governments were remiss in their contributions to the funds that are part of the employees agreed upon wages. The employer omissions are the result of incompetence, corruption, mismanagement and cronyism.
Resources designated to pension funds were and are diverted to politically motivated programs.
Directors are appointed by elected officials, asset managers are appointed by directors, asset managers invest funds with brokers favorable to elected officials, brokers contribute to elected officials campaigns or personal wealth.
Governmental bodies legislate early retirement programs that reduce senior high paid employees with new employees earning a lesser amount. Early retires will be eligible for pension benefits for pension benefits for a longer period of time and governmental bodies will reduce labor cost by hiring lesser salaried employees.
Political cronies receive benefits from more than one governmental pension program with less than 25 years continuous service for that agency.
If private sector pension programs were run in the same manner as public programs, the sponsors of those programs would be in jail, yet our governmental regulatory agencies allow this to exist.
—John Culloton, Chicago
