Thursday, September 17, 2009

IPERS in trouble? Bail it out (with taxpayer's money)

The Iowa Public Employees' Retirement System is in trouble. So let's just bail it out with taxpayer's money.
Gronstal, D-Council Bluffs, declined to take a stance yet on specific revisions. But his colleague, Iowa Senate President Jack Kibbie, D-Emmetsburg, suggested Wednesday that changes could be made in rules and incentives allowing early retirement and that increased contributions by taxpayers and government workers could be required.
A retirement fund that people pay into* and the managers make lousy decisions and it lost money. They want the taxpayers of Iowa to be on the hook for this. Outrageous.

Here's a lie:
Brad Hudson, a lobbyist for the Iowa State Education Association, which represents Iowa schoolteachers, said IPERS is "a fair system, but by no means is it lavish." He noted that unlike most private-sector defined-benefit pension plans, which are funded solely by employers, the IPERS plan is funded 40 percent by employees.
Most? I don't think so. My current plan is 100% my contributions until I'm there a year and then only 50% of what I put in is matched by my employer. Between my wife and I, there is only one employer that we had that contributed 100% and that was a scheme to purchase it's own stock.

Maybe the Register is trying to slant the story a little?

*(Disclosure: I am part of this system as a former employee of a county-run hospital and I'm trying to get my money out. An no, I do not want the taxpayers to bail it out. I pay taxes in this state, too)

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