Kneale: With NJ Governor Christie, a Star Is Born
Published: Thursday, 18 Feb 2010 | 12:35 PM ET
By: Dennis Kneale
CNBC Media & Technology Editor
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And he cited a stunning stat: A 42-year-old state government worker in New Jersey who gets a 20-year pension has paid in all of $124,000—and will take out $3.8 million in payments and health coverage for the rest of his life.
This simply can’t continue, yet few other politicians are talking about the government pension bubble that could bankrupt some cities. A new report from the Pew Center on the States says states have promised to pay $3.35 trillion to current and retired workers—and are running $1 trillion short in funding that obligation.
The worst-off state: President Obama’s home state of Illinois, which has funded only 54% of what it will have to pay out. Unions now represent 40% of all government workers, and they are especially powerful at the local and state levels. Given the Dems’ union ties, ya gotta question whether benefit cuts are a viable option, as I wrote about here.
But I now hold out new hope, thanks to Gov. Christie of New Jersey. He brings a fresh new face and a voluble, emphatic voice to politics. Let us pray we hear a lot more from him.
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Politicians “adding” part time jobs into lucrative pensions at the taxpayers’ expense is also a big problem.
Time to shift to something that resembles private industry.
(1) No defined benefit pensions for anyone.
(2) Eliminate ALL abuses.
(3) 401ks for everyone. “Recognition bonds” for all unfunded liabilities. Use rock solid Insurance Companies to protect both the employees and taxpayers.
Argh!
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Reinke Faces Life 