The Retirement of Sisyphus 0

Philadelphia, like many jurisdictions (not just cities), has a “pension crisis.”*

The cause of the crisis is not pensions. The cause of the crisis is the decision of governments small and large to agree to pensions, then choose not to fund them. Now that funding time is due, the solution of choice seems to be to screw the workers who have been paying their share of the pension plans all along through payroll deductions.

The Philadelphia City Controller, looking at the example set by professional fraudsters, has proposed a novel idea: buy out pensions at a cut rate so that the pensioners, now that they have reached retirement age, can keep right on working. A snippet from the story:

Butkovitz is proposing that the city offer up-front cash payments to retirees, who, if they took the option, would surrender their lifelong pensions.

The payments would represent only a portion – say, 50 percent – of what a retiree could expect to receive over a lifetime. Still, a fair number of retirees might be enticed by the prospect of a cash windfall they could invest on their own, Butkovitz said.

“This would give people the opportunity to start a business,” he said. “Or do something that could potentially change their life and provide financial security long-term. And, of course, they could convert it into an annuity.”

You can take it from me, starting a new business or gambling at the Wall Street track is not a retirement dream of most persons at retirement age.

Retiring is the damned retirement dream, one which is more and more a stolen dream.

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*In Philadelphia’s case, the problem is exacerbated by the systematic screwing given Philly by the Republicans in the state legislature. For example.