Educators know that their pensions are under attack. Some policymakers and pundits opine that the fabulous pensions paid to public employees are going to cause our economic system to collapse. You won’t hear them say much about the yawning income inequality gap, the growing share of the nation’s wealth now flowing up to the top 1%, or the disappearance of the middle class, as good jobs are outsourced to low-wage nations by corporations moaning that they can’t find qualified workers. What they really mean is that they can’t find engineers willing to work for sub-minimum wages.
So who is fueling the attack on your pension?
It may surprise you to learn that there is an “unholy alliance” between the far-rightArnold Foundation, created by former Enron trader John Arnold, and the respected Pew Charitable Trust.
When a new law was passed in Kentucky, critics were upset.
“Critics, who include pension-fund experts, lawmakers and AARP Kentucky, claim the new law will hurt workers, taxpayers and retirees. What’s more, they say the law was largely crafted behind the scenes by an unusual alliance between two out-of-state organizations: the Pew Center on the States and the Laura and John Arnold Foundation. Some detractors go further and assert that the Arnold Foundation is using Pew’s sterling reputation for academic integrity as a fig leaf to hide its own free-market agenda.”
And the article adds:
“Pew may be mostly known for its financial support of PBS programs, which has given the foundation the kind of publicity that reflects the self-described “non-partisan and non-ideological” nature of Pew’s work.
“Yet Pew has become a key player in one of America’s most partisan issues as cities and states tackle the complex problems involving public worker pensions. Pension reformers present their cause as a bipartisan good-government crusade, but a visitor landing on the website of nearly any one of this movement’s myriad organizations quickly falls down a rabbit hole of interlocking conservative organizations — whose unifying theme seems to be reflexive hostility toward workplace protections and the union contracts that guarantee them.”

As always, well said. May I share this as it is important to get the word out.
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Not surprising. Oddly, education programs for NOVA are funded by the Koch Foundation. Programs that support science topics such as global warming. Kind of contradictory to conservative think tank philosophy. It makes no sense. They talk out of both sides of their mouths.
Nothing surprises me. I just wonder why some of these people continue to undermine people as they age, people who need to have health care, the poor, the children. And they do so while claiming to be the messengers of God. Sometimes I get so scared and depressed.
They continue to push forcing people to have their retirement funds invested in Wall Street and even switch STRS investments.
Do they wish to just turn their backs on most of society? They push for college educations on one hand and offer jobs that pay so little that the education turns out to be a waste of time.
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It’s no coincidence that PBS is sponsored by Gates as well, and their educational reporting reflects that as well. Now cities in California are also planning to cut pensions. Hopefully the courts will stop this since our pensions were part of our salary package–and our salaries were never high considering the amount of post graduate work that was required and we had to pay for ourselves. It took me 15 years to reach $50,000 while places on Long Island were offering that salary after 5 years of service. Thankfully starting salaries have improved, but many college students are not opting in to ed programs.
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http://www.philly.com/philly/blogs/attytood/P-ew-Why-is-a-huge-Philly-charity-going-after-your-pension.html
Will Bunch, senior writer for the Philadelphia Daily News and one of the very few liberal columnists in the city, has also written about this. He quotes David Sirota’s article in Salon.
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http://www.citybeat.com/cincinnati/blog-5085-conservative_report_pension_amendment_would_reduce_benefits.html
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Illinois is currently trying to slash pensions having bought and sold the corporate cry for relief from the pension crisis. After years of diverting pension funds for general fund purposes, the state is trying every trick in the book to weasel out of its responsibility to public workers. Calls for an end to subsidies for bloated corporations, a tax on financial trades, and the institution of a graduated income tax are largely ignored since those who have the power are those who would be expected to anti up. We can teach your kids, enforce your laws, fight your fires, collect your garbage,… but God forbid we be allowed a pension that will allow us to eat and have a home when we retire.
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2old2tch: much said in few words.
And between deserving pensioners and those who want to make old age once again synonymous with “destitute”:
Isn’t there a “messy middle” that reasonable people can occupy?
You know, like when you end up homeless there should be an under-resourced soup kitchen nearby so you only go without two meals a day rather than three?
C’mon, the billionaire boys club can’t do all the giving…
🙂
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Yes!!!!!
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Yes to KTA and 2 old!
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As we have seen and has been boasted of, all organizations are vulnerable to infiltration. With right wing extremists taking over school boards as one example, one must examine in detail any organization such as Pew that suddenly does a 180 turn away from their previous, long held positions. Stand for children is another one those here may be familiar with.
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Matt Taibbi has more in the current issue of Rolling Stone.
Looting Public Pensions: A New Think-Tank Study
http://tinyurl.com/oxp3tv8
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Matt Taibbi’s full article is at:
Looting the Pension Funds
All across America, Wall Street is grabbing money meant for public workers
Read more: http://www.rollingstone.com/politics/news/looting-the-pension-funds-20130926#ixzz2gD3PhKT1
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And it’s really worth reading, as always! Taibbi is always on how anyone who works is being stabbed in the back. Very few people will tackle this subject, but he does it in an understandable way.
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Here in Indiana, our stable, fully funded pension for public employees is threatened by the actions of an an appointed, somewhat anonymous pension board. Their reason? It should be turned over to private companies and mimic the free market. Interest rates will drop from 7% to around 4% costing thousands of dollars per year to public employees. Worse, no accountability to voters!
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What is the pension fund investing in that earns 7%? It seems to me that there must be a significant amount of risk associated with that high a rate of return.
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That’s just it. It’s not at risk. The return has dropped a bit to 6.75% but the Indiana Public Retirement System that is run by a former Thompson exec wants to outsource this fund & those teachers who are nearing retirement are set to lose a lot of money on which they were counting. He is moving all the risk to public employees while this fund has worked well for years.
Oh & this won’t impact retirements of the legislators in Indiana either.
It’s a move to make Wall Street even more money & force many veteran teachers to retire this year.
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Treasury bond are usually considered the least risky asset available, and the current yields on those bonds is under 3% for the 10 year bond.
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Another good article by Rolling Stone called “Looting the Pension Funds”: http://www.rollingstone.com/politics/news/looting-the-pension-funds-20130926
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Whoops, article was already posted above.
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Frying Pan’s Gary Cohn has a more recent piece on Pew / Arnold’s plans for a 2014 pension-gutting ballot initiative for California:
The tactic is obvious – drain union resources in every election cycle.
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Looking forward, I believe that a defined contribution pension fund like that used at New York University solves many problems. It forces the same elected officials who promise a level of payment to make that payment each and every year. There is no incentive to try and force teachers out just before a pension vests. The many teachers who leave the profession will get some retirement benefits from even only a few years of service.
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CORE-CA was formed by the King Family of L.A. in about 1985 due to Celes King III seeing the civil rights groups and others being bought and sold through donations by the corporations and wealthy. He separated CORE-CA from CORE nationally legally for this reason. He was prescient. Look at it now. Want to know who you are dealing with? Go to their website and go to funders. Go look at NAACP, Urban League, Al Sharpton and all the others and see where they get their money from. Now, let me ask you this: “If you cross your funders what will happen?” You will lose your funding so you must jump ultimately to their tune not the issue that is if you want to keep your cush job with all the plane flights, meals, hotels and being soooooo Kooooool. You would do anything to maintain that lifestyle as what would you do then?
We are self funded. We do not have to beg for money therefore we work issues and have a reputation of not being ideological at the highest circles for a good reason. We also have a UN NGO status which they do not have as Celes King IV’s mother was for 8 years the U.S. representative to the U.N. for women world wide which has given us another perspective on civil and human rights. This family has been constantly in civil rights since 1898 in Mississippi when his great-great grandfather was about to be lynched for organizing. Think about a black man in Mississippi in 1898 organizing. This is our DNA.
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Here is another good article from 2012
http://blogs.wpri.com/2012/12/11/texas-enron-traders-fortune-helped-fund-engage-rhode-island/
and more here
http://www.salon.com/2013/09/26/exposed_enron_billionaires_diabolical_plot_to_loot_worker_pensions/
This is the part 1 of 2 of the big picture – just like Diane has pointed out. Of course part 2 is the privatization, which will be hurried along because of part 1. States will have no recourse but to privatize. There seems to be a gearing up for another grab.
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Yeah, it’s just to fuel jealousy by people who stupidly allowed the garbage 401(k)s to take over private industry and ditched pensions. Pensions are deferred compensation; furthermore these idiots who want to abolish public pensions haven’t gotten it through their thick skulls that public employees in 14 states don’t pay into Social Security, and those who paid into it before going into public employment have their SS STOLEN from them thanks to WEP/GPO.
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I should say they lose part of their SS through WEP, but many will not get survivor’s benefits at all because of GPO.
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True. I worked in WV and had both SS and STRS taken out of my check. Now I am in OH and can only draw STRS.
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The first reform we conservatives are insisting on is conversion of all future pensions to defined contribution plans (401k’s), but that MUST be accompanied with inclusion of teachers in Social Security. The day of the defined benefit pension is as dead as a doornail.
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You better hope it’s not because defined contribution plans are SCAMS.
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I’ve retired on one, and it’s quite reliable. In what sense might a defined contribution plan be a “scam”?
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Besides, you cannot force states to join Social Security because of the constitutional prohibition of the federal government to tax state and locals. States can voluntarily opt IN SS, but they cannot be forced to.
Your suggestion would not work at all on top of thinking public employees should be equally poor as private ones.
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I AM assuming that public employees should be as poor as private ones.
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Some excerpts from the Matt Taibbi piece at Rolling Stone (since Taibbi singles out John Arnold and his right-wing foundation, perhaps at some point he’;lllook into and write about corporate-style education “reform,” which is funded by the likes of the Arnold, Bradley, Broad, Gates and Walton foundations, among others):
“In state after state, politicians are following the Rhode Island playbook, using scare tactics and lavishly funded PR campaigns to cast teachers, firefighters and cops – not bankers – as the budget-devouring boogeymen responsible for the mounting fiscal problems of America’s states and cities.”
“Politicians run for office, promising to deliver law and order, safe and clean streets, and good schools. Then they get elected, and instead of paying for the cops, garbagemen, teachers and firefighters they only just 10 minutes ago promised voters, they intercept taxpayer money allocated for those workers and blow it on other stuff. It’s the governmental equivalent of stealing from your kids’ college fund to buy lap dances.”
“state pension funds were more or less in decent shape prior to the financial crisis of 2008…prior to the crash, state pension funds nationwide were cumulatively running a surplus. But then the crash came, and suddenly states everywhere were in a real, no-joke fiscal crisis. Tax revenues went in the crapper, and someone had to take the hit. But who?…Cuts to corporate welfare and a rolled-up-newspaper whack of new taxes on the guilty finance sector seemed a good place to start, but it didn’t work out that way.”
“the idea that these benefit packages are causing the fiscal crises in our states is almost entirely a fabrication crafted by the very people who actually caused the problem…we have an unfunded-pension-liability problem because we’ve been ripping retirees off for decades – but the solution being offered is to rip them off even more.”
• So, here’s the gist: Rather than take any responsibility for what they’ve done, those who lied and schemed and deceived –– and who reaped enormous profits while nearly taking down the U.S. economy –– and then got bailed out by taxpayers, point the finger of blame at public schools while simultaneously making every effort to undermine pensions for public employees. The terms disgusting and despicable do not come close to defining their conduct.
By the way, if you want to see how bad the “culture” really is, read this piece on “reforming” education at Harvard Business School:
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As long as teachers pay into their pensions at a “fair” rate, this should not be a problem. Those funds that are viable are because of the way they have been invested.
A pension is a selling point for a job with very little in the way of financial reward. But the problem now is the “reformers” are trying to find ways to fire experienced teachers prior to collecting a pension by using unfair and not well-balanced evals.
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