Plans to use our Pension to pay off others Student Loans!

Pension Raiders

How forgiving Student Loans can affect your pension

I’m watching many current presidential candidates and politicians discussing forgiving student loans.

One of the main ways suggested to accomplish this is by “having Wall Street” pay for it.

In reality it’s having our Pension Plans pay for it!

Bernie Sanders plan lays it out like this, “We can guarantee higher education as a right for all and cancel all student debt for an estimated $2.2 trillion. To pay for this, we will impose a tax of a fraction of a percent on Wall Street speculators who nearly destroyed the economy a decade ago. This Wall Street speculation tax will raise $2.4 trillion over the next ten years.  It works by placing a 0.5 percent tax on stock trades – 50 cents on every $100 of stock –  a 0.1 percent fee on bond trades, and a 0.005 percent fee on derivative trades. 

The problem is Wall Street is US!

Pensions, like PERA and 401k’s invest our money in Stocks on Wall Street. How well those investments perform determines the health of our Pension Funds and our COLA’s (Cost of Living Adjustment).

I’ll use the PERA Correctional Plan as an example. Our plan is based on an actuarial return on investment of 7.5% annually. 

The PERA Correctional plan COLA is dependent on funding status, a large part of that is investments!

“Beginning in 2019, the COLA will be equal to 100 percent of the increase announced by SSA, with a minimum increase of at least 1 percent and a maximum of 2.5. If the Plan’s funding status declines to 85 percent or below for two consecutive years or 80 percent for one year, the cap will be lowered from 2.5 percent to 1.5.” -PERA website 

In other words, if Wall Street is taxed to pay off student loans, Retirees and 401k’s will be the ones paying those loans.

The result would be lower monthly retirement payments and lower cost of living adjustments.

You never thought you’d work all of your life just to have your retirement investments taken to pay off someone else’s student loans did you?

Some politicians think that’s a great idea. 

According to Bernie Sanders, taxing Wall Street will raise $2.4 Trillion over 10 years. That's a $2.4 Trillion hit on our investments! 

The concept of taking our investments to pay off someone else's student loan is wrong.

Watch your wallet.

Dave Metusalem , Conflict of Interest on PERA Board

Dave Metuslam

I just read the June 29, Newsletter for members of PERA today. As a Corrections Retiree Reporter I feel duty bound to point out a conflict of interest.

This caught My eye,  from Thomas Stanley,President of the PERA Board of Trustees: " I also want to welcome David Metusalem back to the board as the Retired, Disabled, and Survivor representative. Dave has prior experience on the PERA board as an elected Police and Fire representative and also served as vice president."

Let me state up front, this appointment is rife with conflict of interest. Dave rose through the ranks at the Ramsey County Sheriff's Office. He eventually was the Under Sheriff at Ramsey County, July of 1995 to March 2017. During that time he sat on the PERA Board representing Police and Fire.

He had to step down from the PERA board when he retired as a Peace Officer and became the Executive Director of the MPPOA, May 2017 until December 2018 when he left the MPPOA. All is well and good up until then.

Well now he is the appointed Chief Deputy of the Ramsey County Sheriff's Office and the PERA Board Retired, Disabled and Survivor representative and therein lies the conflict.

As Chief Deputy he has the power to hire and fire, but more importantly, as Chief Deputy he has say over which Detention Deputies and Deputies can qualify for Disability under PERA. So the conflict is, will he be looking out for the interest of the Ramsey County Sheriff's Office or the PERA member seeking a PERA disability pension?

This is perfectly legal. He is a retiree, and as an appointed Chief Deputy he can legally hold this position. But this loop hole in the law allows a conflict! Imagine you're an injured Ramsey County Detention Deputy or Licensed Deputy and your boss has a vote on the PERA Board whether or not you qualify for a Disability Pension?

The election to fill the Retired, Disabled, and Survivor representative won't open up for more then a year. But at that time I will put my name in to represent us on the PERA Board as the Retired, Disabled, and Survivor representative.

I look forward to your support and will continue to look out for our Pension.

Sherburne County may add more ICE Beds

Detention Deputies/Corrections Officers are on the front lines of Homeland Security!

According to MPR:

Sherburne County is proposing to expand its jail to provide space for up to 500 immigration detainees, an increase from the 300 beds it currently provides for U.S. Immigration and Customs Enforcement.

Sherburne County has the second-largest county jail in Minnesota, capable of housing 732 inmates. For decades, the county has contracted with the U.S. government to house immigration detainees and other federal inmates. Its jail once held the 20th conspirator behind the Sept. 11, 2001, attacks, Zacarias Moussaoui.

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