President Obama, senior administration officials and public policy advisers have stated that the greatest threat to our national security is our national debt. Our military understands this and the Department of Defense is taking the lead in proposing major cuts in pay and benefits for our military, veterans and their families.
The Center for American Progress led by Chairman John Podesta has called for capping military pay raises, eliminating military health benefits for many retirees who are covered by an employer-provided plan, and reducing the value of military retired pay as well as making military retirees wait until age 60 to start receiving it. These proposals have been embraced by the Department of Defense. It is estimated these changes will save $1 trillion over the next ten years.
Should all government employees at every level show the same commitment and take the same pay and benefit cuts to keep us all from falling off the “fiscal cliff”?
If our soldiers who are on the front lines defending this nation and our veterans who have served honorably can sacrifice cannot every government employee? Should not teachers, our police, firefighters, city, county state and federal employees not do their part as well? Are we not one nation facing the same fiscal future?
Americans for Prosperity (AFP) has recognized government pay and benefits as a priority issue to be addressed during the upcoming Florida legislative session.
The Five for Florida Plan states, “Our politicians must stop making promises that taxpayers can’t afford. We must force them to be honest with us, and make decisions that will protect us now and in the future. We need an honest, transparent retirement plan that works for both hardworking taxpayers and government workers.”
AFP’s Five for Florida Plan reports:
- Florida’s Retirement System (FRS) serves more than 1 million government employees, making it the fourth largest public pension program in the country. Source: James Madison Institute
- The FRS is 88% funded, assuming a 7.75% return on investment. Over the last 12 years, the fund has received an average return of 3.3%. Source: James Madison Institute
- Florida currently has an optional defined contribution plan, however only 16% of employees elect to be enrolled in it, versus the 84% in the pension plan. Source: James Madison Institute
- Public sector pension programs guarantee a rate of return that is 3 to 4 times higher than what private sector workers are able to earn. Source: The Heritage Foundation
- The State of Florida currently contributes $5.5 billion per year to the FRS, but would need to double that contribution to $11 billion a year for the fund to remain solvent. Source: James Madison Institute
Changes must come; government must set the example for the rest of us by stepping up to the plate and making the hard decisions to rein in spending in the short and long terms. Government employee salaries and benefits are now coming under greater scrutiny by both liberal think tanks like the Center for American Progress and conservative ones like Americans for Prosperity.
Finally, we are getting somewhere when both of these organizations come to the same conclusions. The question is do our political leaders have the will to do what is needed?
Now is the time for political leaders at the city, county, state and federal government to see the writing on the proverbial “fiscal cliff”.