Pension Panic In Paradise: Maui Residents Outraged Over 52% Spike In Pension Contributions

Tyler Durden's picture

Earlier this year, Maui County residents in the island state of Hawaii were somewhat less than ecstatic to learn that their property taxes were going to increase by approximately $29.7 million for fiscal 2018.  According to County Council member statements at the time, the additional funding was needed to help provide better public services for Maui residents.

That said, fast forward just a few months and it looks like a substantial portion of those tax increases won't go to provide better public services for Maui residents at all but rather will be plowed into the state's massively underwater pension fund.  As The Maui News points out today, Maui's contributions to the state Employees’ Retirement System will surge 52% over just the next couple of years...and that's if everything goes to plan.

“This is a massive, massive increase,” Williams said.

 

Maui County paid $31 million into the pension fund in fiscal 2017. But now, its payments will increase to approximately $34 million in fiscal 2018, $36 million in fiscal 2019, $42 million in fiscal 2020 and $47 million in fiscal 2021.

 

This amounts to a total of $36 million in extra payments by Maui County over the next four years alone — and its contributions are set to remain just as high every year afterward.

 

Williams said the extra payments were needed to help the public pension system avert a crisis in unfunded liabilities, currently estimated at about $12.4 billion.

Pension

Meanwhile, as we've pointed out multiple times before, the victims of Hawaii's ponzi failure will inevitably be the kids as funding gets diverted from public schools and into the pockets of a few retired public employees.

Williams is correct that the increased payments will help the state pay down its unfunded liabilities and return to being able to meet its current obligations to state and county employee retirees. But a new crisis has begun — the crisis of taxpayers feeling the pressure to bail out the system.

 

Williams acknowledged that the counties would be under more financial pressure.

 

“We know over time it really crowds out other goods and social services that are required, whether it’s education or roads or hospitals, or you name it,” he said. “There are limited revenues available, and these are commitments that have been made and need to be paid.”

But, maybe there's a better way...we happen to know of a guy who recently paid $100 million for a large chunk of Kauai and is eager to settle a dispute with locals over his massive border wall (see: Protesters Plot "Border Wall" Rally For Tomorrow...At Zuckerberg's Sprawling $100mm Hawaiian Estate)...perhaps a 1x gift to the Hawaii retirement ponzi is the perfect solution?

Zuck

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The Greek horse's picture

which one will go in flames first??

1===SOCIAL SECURITY

2====PENSIONS

Gap Admirer's picture

Enjoy your socialist paradise, bitchezzz.

And you're still getting WAY more than you would ever get in the private sector.

Bumpo's picture

Just switch em to 401ks. What makes govt workers better than the rest of us?

J S Bach's picture

If you want socialism, you gotsta pay for it.

Manthong's picture

 

Hell… you live in Paradise, for chrissake…. pay for it…………

……. And elect more democrats……..

wee-weed up's picture

 

 

"52% Spike In Pension Contributions"

Hey, they've got to be able to pay all those exorbitant...

Retired bureaucrat's salaries, don't you know.

The one's all the Lib politicians promised them for their votes.

Just like in Kalifornica.

But, it's too little - too late.

Can you say, Tick, Tick, Tick,

BOOM!

new game's picture

property taxes. yeah gov workers property taxes, not mine...

fukers...just another tax everybody for a gov.org ponzi problem.

yup, running out of other peoples money. let us just fast fwd to the pension ponzi collapse and get this reset over with. no, they will drag everybody with them...

just plain stealing of other peoples labor with the law on there side(backed by violence).

pay those fuking taxes or we will take your home...

jeff montanye's picture

i like the idea of zuckerberg paying the liability off.  something to wipe that smirk off his face.

codecode's picture

Building a wall... Zuck must be a Trump fan?

Theosebes Goodfellow's picture

Wait! Where's the quote from the govt. union employees rep saying that this is actually good for Mauians and that it's a "needed contribution for all Mauians"? Anybody stick a mic in that clown's piehole?

Chuck Walla's picture

Hmm, Sounds like New Jersey. Is New Jersey, NO, it can't be, Paradise?

ipso_facto's picture

'Hmm, Sounds like New Jersey. Is New Jersey, NO, it can't be, Paradise?'

It can be DEMOCRATS.

boattrash's picture

Yep, maff's a real bitch sometimes.

rrrr's picture

I was a bureaucrat once. The people they assigned to look after the pension money had no experience, were not intelligent, and didn't know how to go about figuring out what to invest in. They were chosen because the administrators liked them personally. Then the administrators got stock market professionals --brokers-- to instruct them on what to invest in. They did this also regarding the insurance program, chose incompetent people to negotiate and contract the provisions. Naturally I got out of there as soon as I could, and now when I hear about the bureaucratic pension troubles, I know the cause and feel pretty good about myself.

jpot34's picture

You aren't anywhere near the sharpest pencil in the box! When these pensioners took the job, they got a pension. What part of that equation do you not understand? All you whiners took jobs without pensions, is that my/our fault!? Fook no! Bunch of millenial cry babies!!!!!!  Jeesh.

allgoodmen's picture

Maybe we're millennial crybabies, but we weren't around when you were promised those cadillac pensions, and we ain't paying for them

Cardinal Fang's picture

I see you conveniently left out the part about the conspiracy between public employee unions and democrat politicians against the average Joe taxpayer.

Well, not convenient, self serving.

Ben Tornilloed's picture

What a dumb fuck thing to say.  If you had ANY integrity or understanding that TINSTAAFL, you would have immediately known that the "promises" you were made to be a lazy incompetant, non market oriented, customer hater, cock sucking bureaucrat were lies.  Fuck EVERYONE of you leeches.

RabbitChow's picture

This is laughable.  Govt workers ARE on 401(k)s now, and have been since 1983.  When are you people going to do your own research?

Oh yeah, and for the ones that are on 401ks, they can't afford to retire either.  It's one big party.

JibjeResearch's picture

It's a tough choice, but Pension since it can't CTRL+P

Kidbuck's picture

Social Security has already failed. Inflation has reduced the value of payments by over 50% in the last few years. As the Federal reserve continues to under estimate inflation by fucking the CPI numbers COLA has become a cruel joke.

Thethingreenline's picture

Government workers don’t get SS, don’t forget that.

TTGL

all-priced-in's picture

They even have a name for people that get both SS and government retirement - they call them "double dippers" .

 

I know a few people that worked government jobs long enough to get a pension - they "retired" at 55 - then went to work in the private sector.

 

They now get 2 checks - one from SS and one from their governmet pension.

 

I know one guy that spent 20 years in the military - then 15 years working for the state then 10 years in the private sector. He is a triple dipper and gets 3 retirement checks.

 

Not saying they didn't qualify for these - and am not saying they don't deserve  them -

 

But you are totally wrong if you think you can't get both (or all three).

 

 

divingengineer's picture

Yes, but the cut your SS check down to 40%. It's called the Anti-Windfall Act. Examine it in the reverse, say you worked 30 years in the private sector and the last 5 years of your career in the Govt sector. You'd get a pittance of a pension for 5 years service to the govt and 40% of your SS check. 

My father, grandmother, and one of my aunts are retired on city pensions in CA.  My father does fairly well, but he was a policeman, aunt and grandmother retired from the museum and don't make very much. They're not eating cat food, but they don't take vacations or drive new cars either. 

I really think the pension haters here should be directing their frustrations in a more constructive direction.

Ben Tornilloed's picture

How the fuck is a government worker. er I mean leech, able to receive payout for a pension BEFORE they are retirement age??  

Eliminate that and see what that does for the numbers.

rpboxster's picture

Plus the gov't pensioner was able to stack all accrued vacation into his last year's salary for purposes of pension payments.  That's how we get all of these 100k/yr pensions for 50 year olds, who then typically get a job on the private side of whatever govt office they worked in.  It's the healthcare for life, too, that is equally valuable.

twh99's picture

And all this before they even implement chained CPI.  Then the payments not only for SS, but all other government programs will be under the real CPI.

The burecrats just keep writing checks and the politicians are too cowardly to say, enough is enough.  So they play games with the numbers.

wisebastard's picture

lmfao......it will be the middle class......

Buck Johnson's picture

Pensions will be first, count on that.

 

 

Mena Arkansas's picture

They'll just keep raising property taxes until enough people default and .gov can auction off their properties to make sure the retired parasites can live in the style they demand to be accustomed to. I'm sure the former homeowners will enjoy their new life living in a tent city on Oahu.

Sidenote: I'd love to see a tiger shark wipe the smug smile off that motherfucker's face.

new game's picture

he makes it onto the top ten most hated mutherfuker alive list...

right up there with the cunt.

divingengineer's picture

Average CalPers annual retiree pension -$30,456.  That's about $2,538 a month, in California.

No SS for them either. A fucking studio apartment cost $2,000 a month here in the bay area. 

You guys are so full of shit it is coming out of your ears.  

 

 

http://californiapolicycenter.org/how-much-do-calpers-retirees-really-make/

 

 

Ace006's picture

It's $2,538 a month everywhere.

serotonindumptruck's picture

Damn, Tyler!

Why did you have to put zuckerfuck's picture in the article?

Have some mercy, bro!

Hapa's picture

I live down the same road as Zuckerburg on Kauai.  I think he's here right now, lots of security and gatekeepers suddenly appear when he's on island.  He's building a massive house I hear, lots of grading going on, lots of heavy equipment.

The Mauai story is probably the same as for Kauai and Oahu and Big Island.  State government is on Oahu, but the islands (counties) must pay to upkeep Honolulu.  We are now paying into a fund to help support the rail project over there.

I can see the day when the islands revolt.  The problem is, we have lots of waste here in the Kauai government, and of course pension obligations.  It's going to hurt everywhere in the future as property taxes go up.

 

hawaiian waverider's picture

Maui resident here.  Oahu like a bloodthirsty vampire sucks funds from us outer islands and none of our outer islands politicians, except our Maui mayor, stand up to them.  Fuck Oahu.   

Our whole state is a Democrat nirvana which explains why the finances are so screwed up.  Union pushes around politicians like a cat d9 pushes topsoil.  

It's bullshit.  

Refuse-Resist's picture

Wow. It sounds like most other states. A big city full of welfare and .gov parasites, and hinterlands full of working people paying through the nose and being dominated politically by the gibsmedats in that city.

Ace006's picture

It's everything we've worked for. Rule by inferiors.

RabbitChow's picture

The story is the same pretty near everywhere.  I live in MD; for years, the counties have paid in the county tax (equivalent to an additional 50% of your state taxes) and most of the money is spent on the bigger urban areas like Baltimore and the metro DC area.  Eastern shore and Western MD, forget it.  The only upgrades I've seen there are widening highways to get people to the beaches for vacation.  Talk to the locals and they'll tell you the MD govt takes everything from you and gives nothing in return.  There has been talk of secession, even this close to DC. 

Handful of Dust's picture

But those gubmint employees are entitled to it!

nightshiftsucks's picture

The peasants will kill you before you collect all of it, enjoy

waspwench's picture

Perhaps Maui residents need to elect a new County Council.

hawaiian waverider's picture

And new state senators and representatives who all have to play along with the Democrat machine.  What a bunch of pussies and worthless people they are, every single one if them. Not one of them a Republican.  Totally controlled by democrats.  

jpot34's picture

Repubs are no better! They all sleep in the same bed. Are you that dam dumb!?   LOL!!!!!

Ben Tornilloed's picture

If you are going to try and cuss, you fucking government shit stain, learn to spell.