Home / News / Taking Liberties /  Let's Hear It for Double Dipping
  Share
Tuesday, November 29,2011

Let's Hear It for Double Dipping

By Joel McNally
 
Right-wing politicians who are trying to whip up hatred toward public employees are really into name-calling. And sometimes it's easy even for those of us who should know better to be taken in by it.

Let's talk about double dipping. Being called a double dipper is lots worse than just being called a dip. It implies something dishonest, underhanded and sleazy.

We all know Republican politicians, who are quite familiar with the concepts of dishonest, underhanded and sleazy, loathe public employees. Except, of course, when Republicans lie, cheat and twist laws to try to protect themselves from being recalled from their own jobs as public employees.

Still, Republicans were shocked to discover recently that double dipping was going on among public employees, including the worst kind of public employees in their minds: university employees.

The latest flap was over the vice chancellor in charge of finance at the University of Wisconsin-Green Bay, who suddenly began collecting both a salary and a pension for doing his job.

Tom Maki retired and then was rehired, so he was receiving not only his $131,000 annual salary, but also a state pension estimated at $40,000 to $70,000 a year.

It's a sweet deal. There's no question about that. But there are two other things everyone also should know.

One is that a pension, which may be an alien concept to most workers today, is a perfectly legitimate form of compensation for work already completed.

The other is that working for pay after retirement is not some kind of illegal scheme. It will probably be a requirement for everyone in the future.

First, we should explain about pensions. Gov. Scott Walker, aided by the media, misled a lot of people around the state into thinking public employees didn't have to pay anything for their pensions. But many argue that public employees actually paid 100% of those pensions.

Pensions once were a common form of compensation in this country. Instead of giving employees all their wages in a weekly paycheck, employers would hold back some of the employees' pay and put it into a pension to be paid out after retirement.

Pensions are rare today because employers began relentlessly reducing wages and benefits to increase their profits. Only employees with very strong unions managed to salvage their pensions.

Other working people either saw their pensions disappear completely or morph into 401(k)s, which employees had to fund out of their own salaries.

One of the most successful con jobs in history was Walker turning the anger of working people toward other workers who managed to hold onto pensions instead of where that anger logically should have been directed—at the employers who took away pensions from everyone else.

Playing by New Rules

For those who still have pensions, it makes perfect sense to retire and begin collecting the benefits when they are eligible. It is deferred compensation earned from years—usually decades—of work.

The next sensible thing to do, especially in these difficult economic times, is to get another job.

For most people, that does not mean getting another job as a university vice chancellor. But anyone with education, skills and years of management experience shouldn't have to become a greeter at Walmart either.

In fact, there are estimated to be about 6,000 state and other government employees who have retired, begun collecting pension benefits and then have been rehired as public employees. Only about 800 of them are university employees. Some, you may be interested to learn, are politicians.

This is beginning to look like the future for everyone.

You'd have to be living in a very deep open-pit iron mine in northern Wisconsin not to realize that politicians, especially Republican ones, want us all to work into our 70s, 80s and beyond so they won't have to fund Social Security and Medicare.

You'd also have to have a soft, well-compensated job as a congressman, senator or corporate CEO not to realize how difficult that is going to be for many people.

There are still a lot of jobs in this country that require heavy lifting. Octogenarians with walkers may not be able to continue to do the same physical labor they once did, no matter how spunky they are.

But even those working in cubicle jobs that are merely spiritually onerous become very familiar with the concept of old and in the way.

Glowing retirement tributes aside, corporate downsizing always targets well-paid veteran employees who can be replaced with cheap alternatives.

The rules of economic survival for ordinary working people keep changing.

We shouldn't attack anyone for double dipping until we find out how many dips we're going to need in order to live through whatever the top 1% who make all the rules have in store next for the rest of us.

 

POST A COMMENT
REPLY TO THIS COMMENT
I'm all for collecting a pension when you are eligible. But I know in the private sector its rare to be on a pension and get hired back by your employer, unless you are a contract worker and not an employee. My former employer is not going to hire me but does so indirectly from time to time as a contract worker. The abuse comes when a worker starts over and gets to build towards a second pension, gets health care benefits, or requires the state to pay the employer's share of social security. As a contract worker, the worker pays for their own benefits. My former employer simply cancelled pensions and implemented a 401k. The state should do that too. This would discourage double dipping. If someone is working for the state again, their pension should be put on hold. What does "difficult economic times" have to do with anything? If you are collecting a huge pension, who cares about the economy. If the workers had 401ks paid by the employee, who cares if they go back to work? Fair or not fair, thats not the issue. This issue is I don't want my taxes paying for double dippers. Its time state workers grew up and funded their own retirement. Joel says the workers already funded their pensions 100% because they received smaller salaries while the state used the excess salary to fund the pension. I don't think so. I think the pensions were funded by tax money stolen by union bosses through collective bargaining abuses.

 

Yes, one check at a time.  State employees get full pensions at too early of an age.  Full pensions should start at 65 not 55.  Maybe pay them 60% if they retire at 55 and I think its fine if they get a job someplace else, just not with the state.  Well I guess its ok if they work for the state but their paychecks need to be reduced by the amount of their pension check.

Glad to see Walker cracking down on this pension nonsense.

 

Agreed.  If the state funds the pension on tax payers monies then the pension should be placed on pause when the employee assumes another state funded job.  Doesn't mean he shouldn't be able to continue to add to that pension.  Or simply convert them to 401K's.  Pensions have really come and gone, it's the renaments of a time past.  Only heavily unionized archaic industry and the public sector are still relying on the pension system.  

 

REPLY TO THIS COMMENT
Pensions are a result of collective bargaining abuses. These state workers really make a lot of money for having a make-work job. You can really see why out taxes are so high. Sure in the private sector you can strike any deal you want. Its nobody's business. But if you are collecting a paycheck from the state, its everybody's business. Taxpayers don't like flunkies collecting big paychecks, living it up, and having a good laugh at taxpayer's expense. I bet if the state told this guy he'd have to put his pension on hold if he wants to collect his $130k a year make-work job pay, he'd do it in a heartbeat.

 

 
 
Today in Milwaukee
CityGuide2012_banner_410x93_040512.jpg
SpringGuideToHigherEd2012_410x93.jpg
SAG_Click2012.jpg
Express234x120.gif

Join Us at Facebook, Twitter, MySpace and Flickr


 
 
 
*/?>