totally serious question...
if a school under performs- spectacularly, should a union contract regarding pensions be honored?
I'm a firm believer that as a parent I'm responsible for the health, shelter,good nutrition, well being, enrichment, love, and good citizenship of my children and beyond some minor help (homework, tutoring,minor supplies) the school is responsible for their education according to my communities standards (notice I didnt say federal) and if they can't manage that- they shouldn't get paid and I sure as fuck shouldn't have to be taxed to death for their pension
and I don't mean at our kids local level- I have zero issue with our kids schools- they do a lot with very little and I think they deserve every penny of their pay and contractual agreement
tell me why I'm wrong
Teachers salary is or an average of 100k....that is wild misinformation. In this country there may be some teachers making close to 100k but that's in the wealthiest area and a teacher who has been work for 35 years and about to retire. I live in an expensive state where salaries are some of the highest in the country...a teacher makes about 65 to 85 after 15 or 20 years.
But the average is way lower without starting salary in the 40s and 50s.
Same with cops and firemen...starting salary is in the 40s and it can take 10 to 15 years to hit top salary in some cases.
The reason why pension funds are short is because we had the financial problems in 2007/08...and those funds tool a big hit. Add to it that municipalities and state govts...stopped paying into the funds...
But funds are slowly climbing back and as long as the market stays strong they can build up again.
No one remembers before 2007 finicial woes that alot of funds were over 100%
Although teachers unions made a mistake. When the funds were flush ...govt said hey guys since the funds is so fat let's all take a pension holiday... Government. Whitman of NJ did this. And she not only used the state share but also raided the pension and used that money to balance the budget!
Police and fire Union said Don't do it...keep paying in. Even the the government still took their holiday the police and fire kept paying in their share...that's right teachers firemen and police pay into their funds...so some of that is their money in that Pool. And they pay taxes..
Anyway if you compare these funds police and fire is at 86 % while teachers are at 52 %.....why? Because price and fire kept paying in...
So teachers made that mistake. But the govt allowed it.
So that leads up to how these funds work as part of the economic model we use. Your tax dollars get put into the pension along with the employee share..like a 401k...and gets invested in the market...wall Street is all over it. When the market does well there is a return that the state uses...that's your taxes coming back to you.
That's one reason pensions were created and allowed to begin with.
Another reason is because they realized people don't save properly. It was a greater danger to society that people will retire and run out of savings and then the govt would have to take care of these people. That would be a great drain and burden on the tax payer.
Back 70 years ago people were encouraged to save their money..nowadays they are encouraged to spend. When they came up with pensions it was a product of the times.
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