Public pensions are insult

This letter is in response to fireman Mark’s letter Jan. 21.

His complaint that his pension will only be $43,000 a year is an insult to the ordinary private sector taxpayers who receive pensions much less than Mark. He also fails to state that he can retire at the early age of 50 with only 30 years of service and get another job. He will also get guaranteed annual pension increases of 3 percent compounded each year.

At age 67, his annual pension will increase to $71,079 and at age 80 it will be $104,361. His cumulative lifetime payout at age 80 would be $2,045,725 (Do the math.)

Per an article in the Dec. 28, 2010, only 15 percent of the private sector workers get a guaranteed steady pension during retirement. The primary pension for most private sector employees is Social Security, which would be less than $25,000 per year starting at age 67, not age 50 like Mark.

Although, Social Security may have future cost of living increases, there was no an increase for 2010 or 2011.

Let’s assume that the future Social Security pensions increase by 2 percent per year. Then, at age 80, the ordinary private sector employee’s Social Security pension would be $36,725 and the cumulative lifetime payout at age 80 would be $411,568.

Thus, Mark and other public sector workers get 5 times more in pension payments than the ordinary private sector taxpayer ($2,045,725 vs. $411,568). As far as payments that go toward pensions, private sector workers pay 1.22 times more. A public sector worker pays 9.4 percent or less X 30 working years X annual salary) = 2.82 times annual salary. A private sector worker has paid Social Security tax of 6.2 percent + Medicare tax of 1.45 percent =Total tax of 7.65 percent per year for 45 years (age 22 to 67) = 3.44 times annual salary.

Chet Lis

Vernon Hills