Do you think pensions are falling by the wayside?  This interesting post from Forbes talks about the Gilt-Edged Pensions.  Many state workers are still getting pensions.  Generous ones.  My mom is one.  That and full paid for medical benefits.  But whose footing the bill?

The taxpayers.   But what is going to happen in the next even 5 years as massive shortfalls in the pensions occur?  There is no way to fund these required funds other than raising taxes.

So what’s going to happen?  Will this recession end pensions?  Will we just cut the pension benefits in half?  Should we do this to civil servants?

The argument has always been civil servants make peanuts compared to private workers.  Thus the benefits make up for this lack of salary.  Now it appears civil servants are making salaries on par with private workers, thus does this mean they have to give up their benefits?

Are the situations in the article even real?  Can civil servants really make that much?  I know that my mom made close to 6 figures in her last years as a social worker, so it’s definitely possible.  My carpool buddy’s husband as a teacher with a master’s and 15 years makes $90k plus bennies.  But neither of these are easy jobs.  So are civil servants making as much as private sector jobs?

I’m not sure.  But I know from talking with a friend in CA whose a civil servant.  She is worried about her job. Currently they just took a 10% paycut.  She is required to take the first and third fridays off every month!  This will allow the state to save on paying people.

Thus she is feeling that the promised pension is not going to be there for her in 35 years (she’s 31).  And that the health benefits promised at retirement will go away.  But she definitely is making a good living in her field of public health for the state. And her boyfriend whose got 20 years with the state is making over $120k.  So they aren’t hurting.

What do you think will happen?  Do you think these salaries too high?  Will the government cut pensions?  Health Benefits?