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Retirement. Retirement. Union soldiers were offered pension as an inducement to enlist. Bismarck paid his solders a pension as well in the 1880s. State workers began lobbying for pensions in the late 1800s, early 1900s.
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Retirement Union soldiers were offered pension as an inducement to enlist. Bismarck paid his solders a pension as well in the 1880s. State workers began lobbying for pensions in the late 1800s, early 1900s. The whole idea of retirement is only 120 years old, but we treat it like a right.
Age Discrimination Retirement rates increased from age discrimination at the beginning of the 20th century resulting from: Shorter workdays Scientific Management
Why 65? “Age 65 is generally set as the threshold of old age since it is at this period of life that the rates for sickness and death begin to show a marked increase over those of the earlier years” -Isaac Rubinow, 1916 “It is a commonplace fact that physical ability, mental alertness and cooperativeness tend to fail after a man is 65” -Federal Government before the Supreme Court, 1936
Importance of Social Security Benefits to Those Aged 65+ 35% 34% 90% to 100% of Income Less than 50% of Income 50% to 90% of Income 31% Data Source: Social Security Administration, 2012
The Increasing Retiree Population, 1992-2012 Data Source: Census Bureau, Current Population Survey, March Supplements, 2012
Who We Will Support in the Future Population over 65 by 2025 Population currently over 65 Thousands
State Pension Funding Levels 2012 Source: Pew Center, 2012
Funding for Retiree Health Benefits, 2012 Source: Pew Center, 2012
Comparing Pension & OPEB Funding and Liabilities State Pensions $3.06 Trillion $759.7 Billion $2.31 Trillion Retiree Health Benefits $659.6 Billion $32.4 Billion $659.6 Billion Source: Pew Center, 2012
State Pension Reforms 2010 Source: Pew Center, 2012
State Budget Gaps Source: Center on Budget and Policy Priorities, 2012
State Budget Gaps Continued Growth of 8.3% Per Year Would Not Restore Losses from Recession Until Fiscal Year 2019 Source: Center on Budget and Policy Priorities, 2012
Sales Tax Revenue in 3 Recoveries Rockefeller Institute, 2013
Personal Income Tax Revenue in 3 Recoveries Rockefeller Institute, 2013
State Revenue Losses Exceed Previous Recessions Source: Center on Budget and Policy Priorities 2012
Comparing State Revenues to Previous Recoveries Source: Center on Budget and Policy Priorities 2012
Cuts in Services by Number of States and Category Source: Center on Budget and Policy Priorities 2012
Tax Increases by Sector and Number of States Source: Center on Budget and Policy Priorities 2012
How States Closed Budget Gaps by Cutting College Funding Florida drastically reduced funding of higher education, which means less allocation to colleges. The current year tuition increase is 15%. From 2009 – 2012, the tuition increase is 52%. California has cut higher education by over $1 billion. Cal State increased tuition this year by 18%. From 2008 through 2012, Cal State increased tuition by 80%.
City Pensions, Funded vs. Un-Funded Source: Pew Center, 2013
Pension Funding: Cities vs. States Source: Pew Center, 2013
U.S. Federal Government Spending vs.. Receipts, 1980-2012 In Billions Data Source: Bureau of Economic Analysis, 2013
Government Revenue as Percent of GDP, 1979-2012 Data Source: St. Louis Federal Reserve, 2013
Distribution of Federal Spending, 2012 Data Source: Office of Management and Budget, 2013
Effective Federal Tax Rates, All Payers, 1979-2011 Data Source: Congressional Budget Office
Taxes and the Rich Source: IRS, Statistics of Income, 2009
Taxes and the Rich Data Source: IRS, Statistics of Income, 2009
Steps in Tax Staircase Payroll Tax $126 billion Unemployment $ 40 ACA – personal $ 24 Bush-era Upper $ 56 Bush-era Lower $0 Alt Min Tax $0 Sequestered Cuts $ 85 (45 for this year) Who gets hit first? The working poor.
