Letter misunderstood teacher pensions
I would like to address several important omissions missing from Greg Simpson's letter on May 30 regarding state teacher pensions.
No. 1: He noted that most teachers will receive what they contributed within a few years of retirement. That is not accounting for the money that the pension fund will accumulate from investing that money until the employee retires.
No. 2: The state was supposed to contribute an equal amount all these years, which would also grow if it had been invested in the pension plans. No. 3: Most retirees who contribute to Social Security will also receive what they put in within a few years of retirement.
No. 4: The employers of private sector employees are required to submit payments to Social Security for their employees. A private sector employer could go to jail for withholding Social Security payments.
Our state politicians took the money they were supposed to contribute and gave it to their political cronies instead. They are still running our state without any personal consequences.
No. 5: State pensions are not subject to state income taxes, but are still subject to federal taxes.
No. 6: Teachers contribute with every paycheck to Medicare, just like private sector employees do and also contribute to the Teacher Retirement Insurance Plan. The medical coverage they receive after retirement is not free.
It is time to stop villainizing our state pension recipients and aim our frustration and anger at our state legislators and governors who allowed this mess to happen.
Julia Olsta
Bartlett