Long Term Impact of Bad Decisions

Wow, we’ve had a fantastic weekend swimming, boating, fishing, eating, and generally having a great time outdoors.  It kind of stinks to come back to this:

Hundreds of Milwaukee County workers have pumped up their pensions by a total of at least $50 million through an obscure program that skirted county laws and federal tax rules, a Journal Sentinel investigation found.

Workers ranging from gardeners and grass-cutters to county government’s highest-ranking officials have tacked on extra years of service by taking advantage of uncommonly generous “buyback” practices that convert ineligible service into pension-worthy time.

By purchasing credit, in most cases for seasonal or part-time county stints worked in their youth, employees are getting five- or six-figure pension gains over a retirement lifetime. They can retire earlier with full benefits, and some qualify for free lifetime health insurance because of their buybacks.

The Journal Sentinel spent six months analyzing the costs and hired two financial experts to assist in the calculations. The analysis focused on 357 participants, all of whom benefited from buyback breaks approved before 2007.

Spurred by the Journal Sentinel’s investigation, the county conducted its own review and found that nearly 175 of the transactions should not have been allowed. The county has reported itself to the Internal Revenue Service - 12 years after pension officials ignored advice to do so.

First off, kudos to the investigative work of the Milwaukee Journal Sentinel.

Second, this is a good reminder how, in general, bad decisions by government can cost the taxpayers a fortune for years into the future, and, specifically, how Milwaukee County continues to be strapped because of decisions made years ago to shake down the taxpayers to feather the nests of a bunch of bureaucrats. 

OK, that’s all I have.  I had too nice a weekend to worry about this until tomorrow.