Dr. Dale just announced at the school board meeting that the state will allow the county not to pay into the Virginia Retirement System at the actuarily approved rate of about 18% for the next year. Instead they will pay in something like 10%. In about two years the county will have to start repaying the money that was not paid in this year plus 7.5% interest! There is no way the state will allow FFX to pay in without the interest now. This will force FFX County to pay millions of dollars in interest to the retirement fund.

How does our wonderful new governor get the idea that he can rob the state employee pension fund in order to loan it to the county and then ask the county to repay with interest in 2 years?

I thought the feds made raiding pension funds illegal when private corporations did it years ago. ???!!

The teachers need to do some of their own retirement funding like everybody else. Can fairfax county be far behind this mess?

California's College Dreamers
When will students figure out the politicians have sold them out?

Hundreds of University of California students rallied against a 32% tuition hike last week. Let's hope their future employers get a better work product. With just a little research, the students could have discovered that compensation packages won from the state by unions were a big reason for the hike.

Last year, the state cut funding to the 10-campus system to $2.6 billion from $3.25 billion. To make up for the reduction in state funding, the UC Board of Regents increased tuition to $10,300, about triple 1999's cost.

Understandably, students have gone wild. The UC system is supposed to offer low- and middle-income students a cheaper alternative to a private college education. Now a year at a UC school can cost students as much as at many private schools.

Who's to blame? UC President Mark Yudof rightly notes he had no other means of closing the university's budget gap. The university used $300 million in reserves last year and cut staff salaries by furloughing them between 11 and 26 days this year. Governor Arnold Schwarzenegger says "we've done everything we could, but the bottom line is it's not enough. We need to put pressure on the legislature not only this year in a year of crisis, but in the future."

The California legislature? Good luck with that. In 1999, the Democratic legislature ran a reckless gamble that makes Wall Street's bankers look cautious. At the top of a bull market, they assumed their investment returns would grow at a 8.25% rate in perpetuity—equivalent to assuming that the Dow would reach 25,000 by 2009—and enacted a huge pension boon for public-safety and industrial unions.

The bill refigured the compensation formula for pension benefits of all public-safety employees who retired on or after January 1, 2000. It let firefighters retire at age 50 and receive 3% of their final year's compensation times the number of years they worked. If a firefighter started working at the age of 20, he could retire at 50 and earn 90% of his final salary, in perpetuity. One San Ramon Valley fire chief's yearly pension amounted to $284,000—more than his $221,000 annual salary.

In 2002, the state legislature further extended benefits to many nonsafety classifications, such as milk and billboard inspectors. More than 15,000 public employees have retired with annual pensions greater than $100,000. Who needs college when you can get a state job and make out like that?

In the last decade, government worker pension costs (not including health care) have risen to $3 billion from $150 million, a 2,000% jump, while state revenues have increased by 24%. Because the stock market didn't grow the way the legislature predicted in 1999, the only way to cover the skyrocketing costs of these defined-benefit pension plans has been to cut other programs (and increase taxes).

This year alone $3 billion was diverted from other programs to fund pensions, including more than $800 million from the UC system. It is becoming clear that in the most strapped liberal states there's a pecking order: Unions get the lifeboats, and everyone else gets thrown over the side. Sorry, kids.

Get ready for more. The governor's office projects that over the next decade the annual taxpayer contributions to retiree pensions and health care will grow to $15 billion from $5.5 billion, and that's assuming the stock market doubles every 10 years. With unfunded pension and health-care liabilities totaling more than $122 billion, California will continue chopping at higher-ed.

Mr. Schwarzenegger has routinely called for pension reform, but the Democratic legislature has tossed aside the Terminator like a paper doll. Last year, he proposed rescinding the lucrative pension pay-off for new employees, which he estimated would reduce pension pay-outs by $74 billion and health-care benefits by $19 billion through 2040. More recently, he called for doubling state worker contributions to their pensions to 10% from the current 5% of their pay. But these propositions have little traction in the legislature.

California has a governor's race on, and the candidates are semi-mum on this catastrophe. Democratic candidate Jerry Brown has supported modifying public employee benefits but hasn't offered specific proposals and opposes defined contribution plans. Republican Meg Whitman supports increasing the retirement age to 65 from 55 and asking employees to contribute more to their benefits, but she won't support a reform ballot measure for fear it would drive up union turn-out in November.

Memo to marching students: The governor can't save you. You guys need a new legislature. This one is selling you out. Organize an opposition and vote them out in November. Plan B is quit school and become a state billboard inspector.

It's time for state and county governments to act responsibly...fully fund retirement pensions and stop playing with people's future. If the county needs to stop offering pensions then they need to appropriately reimburse all employees.

Registered Voter...a Big talking coward..big man on FFXU...little man in life.

To Reality Check:

This is not California in any way, shape or form. We do not have unions here---!! This is a RIGHT TO WORK state. We have "fake unions"---they can "meet and confer" but have absolutely zero bargaining power. This retirement system (VRS) does not give out megabuck pensions. It was set up for teachers, police, firefighters, etc. AND, until very recently, the money to fund it was taken out of teacher paychecks (YES SIR). IT IS THEIR MONEY! IT DOES NOT BELONG TO MR. MCDONNELL OR THE LEGISLATURE. This will be deemed unconstitutional when the lawsuit happens.

Shame on Virginia! Don't worry---we will never be California. But, we will not be the same Virginia we were before. Trust is being flushed away very rapidly.

If someone can help me understand how we don't have teacher unions in VA?

NEA is "The National Education Association (NEA) is the largest professional
organization and largest labor union in the United States..."

FEA is "an affiliate of VEA and NEA" (http://www.fairfaxea.org/ - Fairfax
Education Association). "The mission of the FEA is to provide leadership
regarding all decisions affecting public education in Fairfax County and to
serve as the collective voice of our members. The Association will endeavor to
continuously improve the conditions of teaching, learning, and working within
FCPS."

On the FEA website it boasts "Collective action creates change. Pressure
from the Fairfax Education Association and the lobbying efforts of its members
has reaped positive dividends for all Fairfax County students and educators."

I get there is no official or recognized "collective bargaining", but if FEA
does a lot of things a union does but calls itself an "association" and
"affiliate" of a union...does it change the net effect or is this just
semantics?

P.S. if semantics, Webster's definition "an organization of workers formed for
the purpose of advancing its members' interests in respect to wages, benefits,
and working conditions"...so if semantics, is there a better definition for
"labor union"?

The big difference is they can't strike. But they can pay for ads in newspapers, TV and other media sources to get their message heard, as well as contributions.

They also can get around the illegal behavior of government employees actively advocating/lobbying for their agency. For instance, the police aren't allowed to spend any time or resources on lobbying for higher wages, more overtime, better training, etc. But they are allowed to lobby through their union or association, which are big contributors to politicians.

This is the soft underbelly of public service, where everyone is in it for themselves. Politicians, Police, Firefighters and Schools. They all want a bigger slice of pie even if they are already full.

Virginia is for suckers Wrote:

>
> How does our wonderful new governor get the idea
> that he can rob the state employee pension fund in
> order to loan it to the county and then ask the
> county to repay with interest in 2 years?
>
> I thought the feds made raiding pension funds
> illegal when private corporations did it years
> ago. ???!!

Pension plans are the next shoe to fall in the economic collapse. All over the country these plans are underfunded. What will all these public employees do when they find out their plan is bankrupt and they were depending solely on that for their retirement?

Seriously, the entire country is F*cked. Most people are completely oblivious to how dark our future really looks.

Virginia is for suckers wrote
--------------------------------------------------
>This is not California in any way, shape or form.
Were heading there.

>We do not have unions here---!! This is a RIGHT TO WORK state.
See other post.

> This retirement system (VRS) does not give out megabuck pensions.
MINIMUM 50 k a year ...say 25 years... Let's see that's.... 1.5 million per person...seems pretty generous....yes you can start collecting at 50 years of age.

>It was set up for teachers, police, firefighters, etc. AND, until very recently, the money to fund it was taken out of teacher paychecks (YES SIR).
TOTAL LIE. You are on a defined benefit plan. What EXTRA you give to your 401K is what the rest of us are doing.

>Shame on Virginia! Don't worry---we will never be California. But, we will not be the same Virginia we were before. Trust is being flushed away very rapidly.
Yes trust is being flushed away by the entitlement society!!!!!
REMINDER: YOU STARTED THIS POST

More of the same WROTE
---------------------------
>The big difference is they can't strike.

Thanks, I missed that distinction. Didn't realize.

Reality Check: Thank you for not blaming the victims entirely. Teachers in VA did not lobby or get to sign a contract for their wages or retirement system. The legislature decides on it. As you can see, the politicians can do whatever they want. On a dime.

I really wonder how much a good teacher is worth to the public and to our country. Teachers are getting the message loud and clear these days. When Wall Street execs are pulling in multi million dollar bonuses, we have to ask ourselves some of these questions. The US ranks way behind many countries in education (it's something like 26 or 27 in math). College graduation rate is now #10. We used to be #1. Going down fast. I'm afraid Trogodor is right---but they have to keep up the illusion that everything is okay for as long as they can.

Virginia is for suckers:

Why have a name like that? It can be taken many ways...such as the taxpayers are suckers. My point is not to pick on teachers but the viability of a sytem that may be unsubstainable. I know way too many people who are out of work right now....companies that will never come back. Mostly small business all over Northern Virginia. Really don't want to hear any belly aching from federal, state, or county employeees about not getting raises, their fair share etc. Wall street bigwigs are on a level by themselves. Do you know what most office workers, retail workers, insurance agents, real estate agents,adjusters, the common folks make in salary? I know many who haven taken pay cuts for several years in a row or are out of work. Have you been to a mall ? The nail salons and mattress stores have taken the anchor slots. Not a good sign.

Underfunded or totally unfunded pensions are a time bomb. The cost of obamacare is pale compared to what it will cost to bail out all the stolen pension funds and cooked books.

"How does our wonderful new governor get the idea that he can rob the state employee pension fund in order to loan it to the county and then ask the county to repay with interest in 2 years? "

7% is assumed IRR for the pension fund. It's not a loan rate. He's asking the taxpayers to make the pension funds whole. It should be the responsibility of the employees. They've been underfunding the retirement system for years. Raise the employee contribution to 10% instead.

It is effectively a loan to the school system so that other things can be paid for. Actually, Mr. Raney, one of the school board members, called it a "tax". You can call it whatever you want, but it's 7.5% more than FFX Co would have to pay if they put the money in now---and they are required to do it. Do you think FFX Co can make an investment that will generate 7.5% for the next year? Maybe yes, maybe no---but what's the point in doing that if they can put the money in now and insure not having to pay more ??

Also, this pension fund was not underfunded. Noone foresaw the stock market tanking. The board of this fund was very responsible. Here's some more news---Teachers who start on or after July 1, 2010 will have to work 10 years longer to get their pensions (another state change). Imagine having 70 year old teachers in the classroom---I'm talking K-12---not where they just lecture in front of college kids. This is truly a "gift" to our children who may have been planning to become teachers and to those who sit in the classrooms of the future.

I know that lots of people are taking a hit---the teachers have had no pay raises for going on 3 years now (and effectively have taken a pay decrease when health insurance is factored in). They haven't gone to the school board with pitchforks yet because they know everyone is taking hits out there. However, doing this to the pension system is something different---they are putting off pension costs and onto the backs of future children one way or another. This is sort of the nail in the coffin. Do you have kids or grandkids or hope to? Start saving for their educations if you don't want to pay for teachers---the public system no longer belongs to the local people. Richmond controls this and the feds want to control other parts of it.

As an aside, I try not to go into malls---maybe go once a year--- including nail salons (have never done that personal beautification project). I try to stay out of all those places since I don't have money to burn.

Don't feel too sorry for their lack of a COLA. They get step increases. It's ridiculous for government employees to get a COLA. If they're doing a crap job, they shouldn't be incentivized to stick around through the COLA in the first place.

Virginia is for suckers. Are you just rattled, a liar or trying to spin? I'm confused but willing to give you the benefit of the doubt.

Virginia is for suckers wrote:

>Also, this pension fund was not underfunded. Noone foresaw the stock market tanking. The board of this fund was very responsible.
GAG. See your own website VRS; it's been underfunded for years

>Here's some more news---Teachers who start on or after July 1, 2010 will have to work 10 years longer to get their pensions (another state change). Imagine having 70 year old teachers in the classroom-

More BS. Don't you know your own system? Right now you can retire at 50. So you retire at 60?

I know that lots of people are taking a hit---the teachers have had no pay raises for going on 3 years now

Except for step raises. Well look around and be grateful!

>(and effectively have taken a pay decrease when health insurance is factored in).

We have been paying our own portion in the private sector for years.

The teachers have received neither a step nor a COLA going on the 3rd year now. You need to read the news and watch the meetings! You are wrong Les! Where do you get this information? Why do you think people are upset??

Most teachers do not start working at age 20 so I don't know where REALITY CHECK gets the age 50 retirement deal. Maybe someone became disabled or something. I know absolutely noone who has retired at 50 in the system (the earliest I have ever seen is 55). And, yes, I do read the VRS letters. I have 22 years of full-time service as a teacher and my VRS statement says that I can retire at age 50 and receive $350 per month (which I could do about now). WOW---sounds wonderful. It's a reduced retirement at that age! Many teachers in this area have moved around a bit as well. You did not watch the last school board meeting--the state has changed the number of years required for retirement!!!!! Please keep yourself informed. I started this thread because I had just seen that news. It's already been done!

Again, there have been no STEP or COLA raises!! Going on the third year of this. Yes, if the private sector is suffering, teachers should suffer also---but this retirement thing comes on top of the reduction in salary (and the money in that fund is teacher/police/fire employee money and should not be "up for grabs" by the legislature and the governor).

Of course I'm rattled. I am not a liar and I am not trying to spin anything. I would like this country to get its priorities straight and that might mean fewer nail salons, tattoo parlors, granite kitchen counters, hot tub bathrooms, etc. and more education and real "exportable" productivity. It's a concern. On the other hand, maybe I could learn to tattoo as a retirement project. I'll bet I could get a lot of my students' kids to come by and pay me at the same time that I remove tattoos from their parents. It's a plan.