KGAN CBS 2 | Pension Protest Over Government Workers

Rae Ann McNeilly, TUA’s Director of Outreach, discussed Cedar Rapids’ pension payout system on KGAN CBS 2. To watch the report, click here.

(KGAN) CEDAR RAPIDS—How much money are government and city workers making during retirement?

Too much, says Taxpayers United of America.

“We don’t want to villify the people who are receiving salaries and pensions from taxpayers,” said Rae Ann McNeilly of Taxpayers United of America. “It’s to villify the system.”

A system which pays government and public city workers multi-million pensions paid by taxpayers, according to the group.

The group wants drastic pension reform. Instead of pensions for retired city council members, make them pay into a 401 K account, suggests the group. And make that financial information public.

“The question begs what are we hiding if we won’t give individual pension amounts- pension payouts,” asked McNeilly.

The state, however, says city and state retirement funds are available to the public online.

Officials from the Iowa Public Employee’s Retirement System say of the 100,000 retired workes getting a pension, the monthly income for each is about $1,200. Money partially funded by the workers themselves.

“The employee contributes to the fund, the employer contributes to the plan, and over the career, the contributions are pooled and invested,” said Donna Mueller, CEO of I-PRES.

“The trust fund with the contributions and investments pays out pensions to the members who draw pensions from I-PRES,” Mueller said.

Thursday, January 19 2012, 12:48 AM CST