Fukushima's nuclear cauldron: Retirees who want to go in.

http://www.minnpost.com/worldcsm/2011/08/04/30553/fukushimas_nuclear_cauldron_retirees_who_want_to_go_in

Fukushima's nuclear cauldron: Retirees who want to go in
By Peter Ford | Published Thu, Aug 4 2011 8:22 am
Nothing makes Nobuhiro Shiotani angrier than to be called a "kamikaze."
Certainly, the sober and precisely spoken retired scientist does not look like a World War II suicide pilot. And he is insistent that his plan to lead 300 elderly pensioners in a bid to stabilize the crippled Fukushima Daiichi nuclear power plant is motivated not by some mad death wish but by pure rationality.
"Older people taking the risk is much less damaging to our society than asking the younger generation following us to take it," Dr. Shiotani says, adding bluntly, because we are nearer the end of our lives anyway.
Shiotani and an old friend, former plant engineer Yasuteru Yamada, founded the Skilled Veterans Corps (SVC) in April, less than a month after a tsunami overwhelmed the cooling system at Fukushima, causing the world's worst nuclear accident since Chernobyl.
By writing letters and e-mails, using Twitter, and sending out a call to action at various blogs, the two men have drawn more than 300 retired engineers and scientists, ranging in age from 60 to 78, into their group. All are offering to use their skills and experience to help cool the reactors following the partial meltdown at the heavily contaminated site. "To my surprise we've received quite a large number of favorable responses," says Shiotani. "They all say they think it's their duty not to leave this negative heritage to younger generations."
Seven members of the veterans group worked at Fukushima during their active careers, he adds. "They feel like mothers who have lost their children."
With their backgrounds as nuclear plant designers, electrical engineers, radiation regulators, and physicists, the retirees "could if they wish get a decent job at Fukushima, but they have chosen us," says Shiotani. "They want to work not for money, but for something fundamental and essential for society."
Called to action
Shiotani himself, a materials engineer, says he feels motivated to volunteer at Fukushima by a personal sense of responsibility.
The plant, he says, "is a grandchild of science. The crisis was caused by human error, and the mess created by scientists and engineers should be cleared up by scientists and engineers themselves. As a physicist I feel it is indirectly partly my fault."
So far the Japanese government and the plant's operator, Tepco, have responded hesitantly to the SVC's proposal.
"The government has said it will welcome our help, but that could be just lip service," says Shiotani. "But they have not rejected us flatly."
Tepco "is quite reluctant to accept us because they are quite proud," he adds. "They want to be able to say they can contain the accident themselves."
But the group's organizers say they detect some movement in official attitudes. The first time he met Tepco executives, "they just pretended to be surprised by our proposal," Shiotani recalls. "Probably to them we are crazy guys."
At a second meeting with officials from both Tepco and the government, however, "my impression was that they were softening," says Shiotani. "Reluctantly they started to consider us."
Some 3,000 people are working at the Fukushima site at the moment, but most of them are unskilled laborers, and all have to be regularly relieved in order to avoid excessive exposure to radiation. Several are reported to have absorbed more than the legal limit already. And about 9,000 workers have been involved in the four-month operation to stabilize the plant.
A handful of SVC members plan to visit Fukushima Daiichi for the first time soon, according to Shiotani. But bravery has its practical aspects, and he is still bogged down in the prosaic problems of insurance.
Appeal to expand insurance coverage
"We are very conscious about our safety … and we have no intention to send our members to Fukushima without insurance," Shiotani says firmly. "I think that's quite reasonable."
The problem is that Japanese state-run insurance plans do not cover volunteers, and private plans do not cover radiation risks. "We are asking government officials and lawmakers to make some sort of government-supported insurance for volunteers," explains Shiotani. "But I have no confidence how soon they can act."
Tepco's recent reports of a second day of deadly radiation levels might not help matters.
In the meantime, Shiotani and his colleagues are working with younger volunteers on fundraising and meeting members of parliament in a bid to win political support for their project.
One thing they are not doing, he says, is arguing over the merits of nuclear power.
"I just hate disputes amongst us, and it has nothing to do with repairing the reactors," he says. "We will have plenty of time after we have brought the reactors to a stable state to debate and argue.
"I've enjoyed the benefits of the Fukushima plant for such a long time, why not thank them by providing some help?" he adds. "Criticizing is very easy, but it's not so easy to make things better. That's why we are sweating so much."

Lawsuit Against 2010 Pension Legislation Soundly Dismissed

Lawsuit Against 2010 Pension Legislation Soundly Dismissed
http://mnfmi.org/2011/06/30/lawsuit-against-2010-pension-legislation-soundly-dismissed/
June 30th, 2011 by Kim Crockett
Two former public employees filed a class-action lawsuit against the state challenging pension reform legislation that state lawmakers passed at the end of the 2010 legislative session. The legislation was intended to shore up the pension funds by reducing future increases paid out to retirees until the funds recover from deep unfunded liabilities. The case known as Swanson V. PERA was dismissed by the Ramsey County District Court yesterday on June 29, 2011.

The 26-page order can be viewed (PDF) here.

Judge Gregg Johnson wrote that the “sole issue before the court is whether the Legislature has the authority to amend a statutory formula that is used to calculate the availability and amount of future adjustments to public retirees’ pension annuities.” The court denied plaintiffs’ motion for summary judgement, while granting the defendants’ (the state pension funds) motion for summary judgment and dismissed all of plaintiffs’ claims with prejudice. (The court did not take up the issue of a class action.)

The court backed up the Legislature’s policymaking authority, stating, “statutes are not contracts absent plain and unambiguous terms that show an intent to contract. To decide otherwise risks a serious intrusion into the Legislature’s policymaking authority. The relevant statutory language does not encompass a legislative contract or promise to refrain from amending the statutory formula, for those public employees who have retired.”

While the 2010 Omnibus pension bill did not fundamentally reform pensions in Minnesota, it pulled the funds back from a precipice. It was a responsible move. This decision, which may be appealed, is good news for the state pension funds. And good news for taxpayers because this means pensions can be changed.

You can read more about the 2010 Omnibus Pension Bill and other pension related topics here. You can read a summary of the 2010 Omnibus Pension Bill prepared by the Legislative Commission on Pensions and Retirement here.

Lack of Retirement Funds Is Americans' Biggest Financial Worry

http://www.gallup.com/poll/148058/Lack-Retirement-Funds-Americans-Biggest-Financial-Worry.aspx

A Lost Generation in the Making?

http://www.commentarymagazine.com/2011/06/10/a-lost-generation-in-the-making/

Why millennials can’t start their careers and baby boomers can’t end theirs.

http://www.nationaljournal.com/columns/political-connections/our-upside-down-workforce-20110609

Investigators: Employee Benefits, early retireee medical.

http://www.myfoxtwincities.com/dpp/news/investigative/investigators-employee-benefits-may-23-2011?CMP=201105_emailshare

MY POSTED COMMENT BELOW:
The video starts with "families" but the under $35 quoted for Hennepin County is for INDIVIDUAL coverage. (this is the same amount active employees with INDIVIDUAL coverage pay). At Hennepin County the early retirement insurance is close to $500 with a spouse and substantially more when dependent children are also included. .........

Hennepin County requires 20 years of service and, as the video stated, it no longer applies to new hires. Beyond the fact that this was part of the employment contract, it is a big part of the reason that a lot of people take early retirement. In my case, I had 33 years with Hennepin County when I took early retirement under "Rule of 90". In my final job at central printing the work was decreasing rapidly. In the last three years I heard that including me, four have retired and there is only one new low pay new hire.

I heard that my previous work related to an onsite mainframe computer is going away. I have many office skills and with my seniority I could have "bumped" a lot of people. When I took retirement three and a half years ago State of Minnesota early retirees choosing INDIVIDUAL coverage had to pay $400 per month. If I had that extra cost I could not have affored to retire. In relative terms it would have cost Hennepin County more to keep me on the active payroll. Concievably the courts could order Hennepin County to rehireearly retirees if they ammended the early retiree health care benifits. That would not be "pretty". It's hard to tell how many people who chose early retirement facedd some infirmaty and would possibly face disability if they stayed on until age 65. I forfieted more
than 400 hours of sick leave when I left but my knees were getting pretty bad. I believe that disability costs are covered by the employer while my reduced pension is covered by PERA. Also, for every year worked beyond "Rule of 90" my pension amount would increase5%.

As the old saying goes: "Be careful what you wish for, you might just get it".

Irish-bombshell-government-raids-private-pensions-to-pay-for-jobs-program.

http://www.businessinsider.com/irish-bombshell-government-raids-private-pensions-to-pay-for-jobs-program-2011-5

The Irish government plans to institute a tax on private pensions to drive jobs growth, according to its jobs program strategy, delivered today.

Without the ability sell debt due to soaring interest rates, and with severe spending rules in place due to its EU-IMF bailout, Ireland has few ways of spending to stimulate the economy. Today's jobs program includes specific tax increases, including the tax on pensions, aimed at keeping government jobs spending from adding to the national debt.

The tax on private pensions will be 0.6%, and last for four years, according to the report.

From the jobs initiative release:

The various tax reduction and additional expenditure measures which I am announcing today will be funded by way of a temporary levy on funded pension schemes and personal pension plans. I propose that the levy will apply at a rate of 0.6% to the capital value of assets under management in pension funds established in the State.

It will apply for a period of 4 years commencing this year and is intended to raise about €470 million in each of those years. The levy will not apply to pension funds established here and providing services and benefits solely to non-resident employers and members. Further details regarding the proposed application of the levy are set out in the Summary of Initiative Measures.

Read more: http://www.businessinsider.com/irish-bombshell-government-raids-private-pensions-to-pay-for-jobs-program-2011-5

NY Times: The Burden of Pensions on States

Caveat:  Colorado offers pensions that replace 90 percent of salary, with generous annual compounding that more than keeps up with the current rate of inflation. (The state has tried to reduce this compounding; retirees have sued.) Colorado’s pensions are unusually rich because its public workers are not permitted to participate in Social Security — the state pension is the only one they get.


FULL ARTICLE AT LINK.
http://www.nytimes.com/2011/03/11/business/11pension.html?_r=1&hp=&pagewanted=all

I posted this on the Bakeen oil blog "Million Dollar Way". The best blog on North Dakota oil.

http://milliondollarway.blogspot.com/2011/01/social-security-now-running-deficit-not.html#comment-form
On a practical note "assumed income" could look at things like the current market cost of housing versus the actual housing costs paid by the person.  To give a personal example I paid off my mortgage in 2005 and my housing is zero debt. My real time housing costs are quite low, probably $1K per month less than market rent.  Would this be "assumed income" if SS were means tested?

We have a real "slippery slope" here if some bureaucrat starts to define "assumed income" in means testing for SS.

As for getting both pensions and SS I have a good county/state level pension which was basically a "shotgun IRA".  I had 5% taken out of my check for three decades.  We also had a portfolio manager who staunchly resisted "political statement divestitures".  He had a 30 year annual return of 11% before the 2008 crash.
Other local pension funds never met a divestiture they didn't like and their rate of return over the same period is 0% to 4%.

Anyway, I'd stay start with a benefits freeze so there is pressure to look at the "slush fund" aspects of SS.

I follow this stuff.  This was long but I need a new spiel to cross post on my http://65y.com blog.

Minnesota Governor Mark Dayton opposes letting states declare bankruptcy.

http://blogs.twincities.com/politics/2011/01/dayton-opposes-letting-states.html

Dayton opposes letting states declare bankruptcy

By Bill Salisbury on January 25, 2011 3:44 PM | No Comments

Gov. Mark Dayton today announced his opposition to federal proposals to offer states bankruptcy protection.
That puts the DFL at odds with former Republican Gov. Tim Pawlenty, who earlier this week said bankruptcy protection is worth considering to enable states to avoid costly pension liabilities.
Here's Dayton's statement:

St. Paul--Governor Mark Dayton, who serves on the Executive Committee of the National Governor's Association, stands in support of the statement issued this morning by Washington Governor Chris Gregoire and Nebraska Governor Dave Heineman, Chair and Vice Chair of the NGA:

"The nation's governors strongly oppose federal proposals to provide states with bankruptcy protection.

"Allowing states to declare bankruptcy is not an authority state leaders have asked for nor would they use. The mere existence of a law allowing states to declare bankruptcy only serves to increase interest rates, raise the costs of state government and create more volatility in financial markets."

While Minnesota faces a serious $6 billion deficit in the next biennium, Governor Dayton is committed to balancing the budget, as required in the State Constitution, using a fair and balanced approach. Filing for bankruptcy to avoid pension liabilities would not be a viable option for Minnesota.

Governor Dayton said, "Taxpayers expect government to be responsible with their money, investing in essential government services like education and infrastructure and that is what we must do to get Minnesota working again. State government will be held accountable for how we balance the budget, and not to file for bankruptcy to avoid our financial obligations."

Additionally, Gov. Dayton points to the 2010 Pension Reform Act as an example of proactive reform on the part of the state to create cost savings while protecting Minnesota retirees. The Pension Reform Act, which received bipartisan support in the legislature and was signed into law by Governor Pawlenty, shows that there are proactive alternatives to bankruptcy for states in financial crisis. The measure lowered pension costs by nearly $6 billion.

The 2010 Pension Reform Act includes provisions to increase vesting periods, increase employer and employee contribution rates, lower deferred interest rates for inactive members and lower refund interest rates. At the end of FY2010, the Minnesota State Retirement System, the Public Employees Retirement Association and the Teachers Retirement Association combined have lowered their unfunded liability by over $5.5 billion.

A pension is a contractual obligation between workers and their employer and the pension system does not add to the state's deficit. Ninety percent of retired public workers continue to live in Minnesota after retirement, and their spending stimulates the state economy and adds jobs in local communities.

States Warned of $2 Trillion Pensions Shortfall

http://www.cnbc.com/id/41129099

US public pensions face a shortfall of $2,500 billion that will force state and local governments to sell assets and make deep cuts to services, according to the former chairman of New Jersey’s pension fund.   (READ MORE AT LINK)

Europe starts confiscating private pension funds.

http://washingtonexaminer.com/blogs/beltway-confidential/2011/01/europe-starts-confiscating-private-pension-funds

The U.S. isn't the only place that's facing a major pension fund crisis. The Christian Science Monitor has this alarming report:

People’s retirement savings are a convenient source of revenue for governments that don’t want to reduce spending or make privatizations. As most pension schemes in Europe are organised by the state, European ministers of finance have a facilitated access to the savings accumulated there, and it is only logical that they try to get a hold of this money for their own ends. In recent weeks I have noted five such attempts: Three situations concern private personal savings; two others refer to national funds.

The most striking example is Hungary, where last month the government made the citizens an offer they could not refuse. They could either remit their individual retirement savings to the state, or lose the right to the basic state pension (but still have an obligation to pay contributions for it). In this extortionate way, the government wants to gain control over $14bn of individual retirement savings.

The article goes on to detail other pension grabs in Bulgaria, Poland, France and Ireland. Obviously, this is a cautionary tale for America. If fiscal austerity becomes a real issue in the U.S. the way that it's been reaching critical mass in Europe -- don't think that U.S. lawmakers regard your either your personal wealth or money they might owe you as sacrosanct. Government has a habit of looking out for itself.