According to the latest annual report of the Chicago Teachers Pension Fund, the average teacher who retired in 2011 after 30 or more years of employment—what passes for a full career in the public sector—had a final salary of $105,888 and will receive an annual guaranteed pension of $78,576. The salary puts the average Chicago teacher in the top 5% or so of workers nationwide, while even fewer private sector workers will receive a pension that generous. The obvious conclusion? Let’s strike.
Also of Interest
State by state: A comparison of public and private-sector pay
The chained CPI: A sucker's bet for the GOP
But the chained CPI really isn't being proposed as a Social Security reform, as a way to make the program more solvent or better-functioning. True Social Security reforms think about ways to better protect the poor, or to encourage longer work lives, or increase retirement saving. The chained CPI, by contrast, is about producing savings within the 10-year budget scoring window.
Don’t raise or eliminate the cap
But by eliminating the cap, a person earning $225,000 would pay roughly four times more in taxes than he'll receive in benefits. A growing resemblance to a welfare plan would be inescapable.