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Government Employee Pensions and Retiree Health Insuraance

 
 
gollum
 
Reply Sun 29 Dec, 2013 08:35 am
I understand that government employees in the U.S. often are eligible for pensions and employee retirement health insurance beginning at fairly young ages. I also understand that in the private sector, such pensions and retirement health insurance is rare.

What is the public policy purpose of giving pension & retirement health insurance to government workers at such young ages?
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Jack of Hearts
 
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Reply Sun 29 Dec, 2013 02:03 pm
@gollum,

The rule is such benefits accrue over time - the longer you work, the better the pension. There are some blatant abuses of this policy as Congressman get some benefits after only one term, (two years).
This was also in the private sector as there was a time that wages were frozen, and companies used benefits to attract the best workers. Modern companies, especially those in silicon valley, are returning to this paradigm as to keep employees, especially those who work in teams (as programmers).
You rarely get rich working for the govt, so many work the trade-off of moderate wages and slow advancement for job security and good benefits. These are usually those who want to raise a family and do not have entrepreneurial leanings.
"20 and out" is what you hear from those who seek a second (third?) change of career. The usual govt deal is retirement with half pay after twenty years of service. Some in the private sector has 401k and matching IRA's contribution programs, but most times you're on your own
You graduate from college and start working at age 23, and twenty years later you switch govts (local-county-state-federal), and still work in your field of expertise, and 25 years you retire at 68 with two pensions and social security - a "triple dipper".
It may seem, to some, to be an excessive entitlement; yet if you have to put four children through college and marry off a couple of daughters, you many enjoy your golden years - but you won't have been living large along the way.
That's the American Dream, whether a serviceman or a civil servant, serving your country shouldn't exclude you from living it.
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