What has a three-quarter billion-dollar unfunded liability, is manually calculated on paper inside a Pennsylvania mountain, and costs taxpayers more money annually than the entire state budget of Florida? Answer: Federal employee pensions.
It’s national Sunshine Week across America. During this week, good-government groups advocate for open government and transparency in public spending. One area that remains hidden is federal pensions.
Imagine if you could see how much your former congressman makes in federal retirement pension? Just how many years were ‘worked?’ How much money was paid-in? How much did taxpayers finance? And, once retired, just how quickly did the congressman ‘break-even’ on their own contributions?
Even Illinois – where the state’s #1 manufactured product is corruption – has the courtesy to show taxpayers all of the gory details about pensions. The books are open on all 700,000 public retirees at every level of government.
In Illinois, this transparency has been instrumental in identifying pension abuses. For example, our organization OpenTheBooks.com found that a pair of Illinois union lobbyists who substitute taught for just one day in the public school system actually received their $1 million lifetime ‘teacher’ pensions. This happened despite a state law expressly designed to stop them. In another case, a former chief aide to previous Gov. Pat Quinn (D) was receiving an annual pension of $137,000 per year rather than the proper $20,000. A good-government pension hawk exposed the mistake and stopped the over-payments.
Many other states have public pension transparency. Citizen outrage in California drove lawmakers to pass a state law curbing a $545,000 pension to a city manager in Vernon (population 102). Now, that manager is retired on $115,000 per year – an 80 percent reduction.
Inside the cavernous, windowless, Cold War era federal complex in Pennsylvania, what mistakes has the U.S. government made while hand-calculating retirement pensions? Nobody has a clue, because the Obama administration has cited a ‘privacy’ exemption to the Freedom Of Information Act (FOIA) and refused to shine a light on federal pensions.
Two years ago, we filed a FOIA request for individual federal pension data. The Office of Personnel and Management rejected our request saying it was, “… a clear unwarranted invasion of personal privacy.” But, our request for the active salaries of 2.5 million federal employees was fulfilled, with seven-year histories. We post these salaries and bonuses (with names) at OpenTheBooks.com.
If active salaries/bonuses are subject to transparency, why would posting federal retiree pension amounts, service credits and contributions be an invasion of privacy? The same privacy law underlies both records. The Obama administration’s legal argument against revealing pension data is arbitrary.