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Originally Posted by PaugusBayFireFighter
Just to clarify, my retirement pension is not paid by tax payers. Firefighter retirement benefits are not paid by the "taxpayers," cities, counties or state. Benefits are deferred compensation, and are paid by the employee funded retirement systems (typically CALPERS or a 1937 act Retirement Fund which are not government agencies). These funds come from employee and employer contributions made while the employee was working, and the vast majority of benefits paid come from market growth and interest from the investment of those contributions. Out of every dollar that funds a firefigter's pension and health insurance plan, 100 cents comes from the workers because the "contributions" consist of money that employees chose, through negotiations, to take as deferred wages – as pensions when they retire – rather than take immediately in cash.
Firefighters pay more into their retirement system than other public or private sector employees. By saving more towards retirement, they earn more once retired - no different than a 401K in the private sector.
Also, Firefighter/Police do not receive Social Security, this is a cost savings to cities and counties that employ them (the employers do not pay the 6+% payroll tax for Social Security) but also means retired firefighters can't collect this benefit. The lack of Social Security benefits and the payroll savings to local government is rarely mentioned in discussions about public employee benefits. Because firefighters can't collect social security, they have negotiated increased retirement benefits.
It's a misconception I wish more new. At times I'm embarrassed to say I'm a retired firefighter because people assume THEY are paying me while they are still working.  |
PBF: If you don't think the tax payers fund your pension you are sadly mistaken. You say the employee makes his/her own contributions to the plan but isn't it the tax payer who funds/pays the firefighter's inflated wages so he/she can contribute to the pension plan?. Also, you say a firefighter's employer funds the other half of a fire fighter's pension, not the tax payer. However, isn't a fire fighter's employer a city or town? The last time I checked there is only one way a city or town can generate revenue.