Analyst: Cities Can’t Afford to Continue Giving Big Pensions
It’s tough to argue against high retirement packages for public safety workers that have been promised for years, but it does make you wonder how the average retiree compares.
Adrian Moore owns Ikon Cycles on J Street. He’s been there just about every day for the past 13 years and works about 100 hours each week.
“Financially my retirement is uncertain. For a small business owner, your business *is* your retirement,” Moore told FOX40.
Moore says he’ll work until he’s 70 or 75 years old. Typically, Americans receive close to $25,000 annually in retirement.
That’s a far cry from Sacramento’s Chief of Police. Rick Braziel plans to retire Dec. 29. He’s only 52 years old, but has served 33 years as a police officer. According to CalPERS, Braziel is owed 99 percent of his salary annually. That’s more than $200,000 per year for life.
“It isn’t the pensioners fault,” explains FOX40 Financial Analyst Keith Springer. “But it does strap a community. It’s a big problem.”
And if things stay the way they are, Sacramento, and other cities like it across the country, won’t be able to afford to keep paying out those big pensions.
“The city will have to go back and negotiate, maybe take a smaller percentage,” said Springer. “Ask them to take 85 or 90 percent. Either that or go bankrupt and get nothing.”