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Let's go to Kate Rogers okay we're talking a lot of numbers -- and the law but you've been talking to some of the people most directly affected both those are already retired from the city of Detroit.
And those who were looking to retire tell us some what you're hearing from these people.
Absolutely I spoke to people on both sides of the issue one woman -- she's 63 she's a breast cancer survivors he's paid into this plan as a librarian for over thirty years.
She retired at age 63 and she is terrified she has no idea if she's going to be able to collect she doesn't want -- file for Social Security benefits until she's 66 at full retirement age.
And I spoke to another worker Bob who's kind of the quintessential union guy that takes people who are anti union -- He worked for thirty years for Detroit as an electrician is collecting pension from that retired at fifty got a second job and indifferent municipality.
And he retired after ten years and has a ten year pension from them.
He's really scared -- but he's collecting two pensions.
Yeah and he's a double -- James show circuit -- currently the last paragraph of Wall Street Journal story when this story first broke.
Quoted a guy who's working for the city he wanted to retire in October at age fifty.
I mean I would just kind of bankrupting ourselves if we start letting government workers retire at age fifty.
Well the problem is the city and the unions those not made promises to workers that they New -- they should have known they couldn't keep.
But both sides were happy the union got to say look we've got -- this huge pay increase but look what the way to when you retire.
And the city didn't have to -- pay for the of the pancreas now so the politicians should not to raise taxes or cut spending.
But -- come and there's just no money anymore.
-- the workers were lied to for generations about the unions and the city leaders.
They would have been much better off -- they had a 41 K style pension.
But after the city made the investment he was their own money and they didn't have to worry about the should be going under -- magic word what they were given.
-- a -- -- imagine if if the pension plans had money in the stock market he had a 401K instead of this this old fashioned pension system which would have done a stock -- the 130%.
Since mid 09.
Got two charts Wallace once shows how many other cities based under funded liabilities Detroit's only five point one billion unfunded pension liabilities actually -- that was nine billion.
You've got 36 billion dollars at Chicago.
But then there's another charge for the gonna show.
Political spending by unions one point one billion dollars from 05221811.
-- here's the thing unions represent less than 7% of private sector workers.
Of government workers is this one big self perpetuating money -- machine -- the unions.
Donate money to -- the government people who will then.
Vote to keep paying into the unions who then get more -- and and keep voting to elect the government meanwhile taxpayers the rest of us from the outside of that circle we're getting.
Well if that's the case and they do very for job and -- Detroit.
Because as I said the the the the payout is 181000 dollars a year is this what you get.
And the even though there might be out wires of people who started work when they were twenty years old and worked for thirty years in Detroit.
The average retirement age for the average worker in Detroit is actually 63 years old.
22 to -- the gift to attain the -- benefits so so did so did did this the I think there's a little bit of a misunderstanding of -- how.
Generous these pension.
Benefits are and I think I think that that indeed the the the the unions and -- and the workers have been working with the city.
All want to try this very rapidly got but -- got -- I -- -- but you have one more question though even if unions have the right not to grant any concessions.
You know the bakers union granted no concessions and hostess went out of business and lost all of those union jobs shouldn't union.
Employees in Detroit be making concessions to help the city get back on its.
-- I think that this city of Detroit unions have made concessions and would make.
Concessions possibly going forward.
But I think that the I think what has to happen is there have to be a dialogue between the city -- the in the in the state the state cut the revenue sharing is in Detroit last year.
By approximately the same amount as -- whole entire pension contribution the Detroit makes.
So there there is that there is a city state problem there and everybody needs to work together okay all right we have to wrap I'm so sorry.
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