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July 25, 2008

Big Dig, Mass Pike Expenses Pile up with Pensions

In addition to the approximately $7 billion in interest the Big Dig is costing the state, and the six figure salaries it pays sign-hangers, Mass Pike is doling out plenty in pensions as well. The Globe reports that several high-ranking Big Dig officials and other Mass Pike employees have received at least $100 million in taxpayer-funded pensions for stopping work before retirement age.

The pensions are enabled by a 1945 law that ensures higher payouts for those who have worked for at least 20 years or whose positions are eliminated. The law was originally intended to protect workers, but now it seems to be costing taxpayers and benefiting already-wealthy middle managers who are working new jobs while receiving pensions from the state.

We're not economists, but we think that paying inflated salaries and pensions might not be the best idea when you're already in massive debt. If the state had the profits of Fidelity, that'd be one thing, but it needs to bring in more money, not spend more. We hope the state reworks its payment plans to best benefit workers without wasting millions paying unnecessary pensions or too-high salaries.

I has a money. What I do wif it?
Guvmint kitteh throze money away!

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