The Greatest Teacher Retirement Crisis in History - John MacGregor, Ted Siedle
In this episode, host John MacGregor dives into what is described as the greatest retirement crisis in history, with a focus on the systemic issues plaguing the United States pension system.
A distinguished panel comprising experts in financial forensics, educators, and leaders from the Ohio Retirement for Teachers Association discuss the deep-rooted problems within the pension system, particularly highlighting mismanagement, lack of transparency, and the chasing of high-risk investments by pension funds as central to the crisis.
With a series of guest experiences and expert analyses, including a spotlight on the teachers' pension crisis in Minnesota and the broader implications for the US economy and taxpayers, the episode underscores the urgent need for transparency, accurate management, and the fulfillment of pension promises.
Ted Siedle, renowned for the largest whistleblower awards in history and co-authoring 'Who Stole My Pension?' with Robert Kiyosaki, sheds light on the opaque and mismanaged financial practices eroding the foundation of pension systems.
00:00 Introduction
01:56 A Deep Dive into America's Pension Crisis
07:48 The Minnesota Teachers' Pension Struggle
11:58 The Power of Pension Activism and the Role of Social Media
12:57 The Ohio Experience: A Call for Transparency and Reform
20:20 Uncovering Hidden Fees: The Battle for Pension Transparency
24:22 Unveiling Pension Mismanagement: A Deep Dive
25:21 The Challenge of Accountability in Public Pensions
26:51 The Ohio Case: A Stark Example of Neglect
29:59 The Dark Side of Private Equity and Real Estate Investments
38:18 The Impact of Mismanagement on Teachers and the Education System
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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
What a great show: the people interviewed, the order in which they spoke, their clarity. I learned so much. Great work, John and team!!
Thank you very much!
Thanks once again for the financial information John MacGregor and team.
You're welcome Craig! Cheers!
It's criminal. These people should be in prison.
Amazing discussion and a problem that impacts us all in one way or another. Unfortunately, any pension shortfalls need to be eaten by the beneficiaries and not the general public, neither local nor federal. Your money, your responsibility to ensure it is managed correctly.
In the discussion it was said that it has been a 2 decade battle. Beneficiaries have done their due diligence but pension managers and elected officials have ignored them. That unfortunately makes this everyone’s problem now.
@@jefftyson2064 It's not a problem for public servants in Kentucky. They get paid regardless. It's by statute. If the private sector can't afford to feed themselves, they still have to come up with the revenue to pay public pension benefits. In Kentucky it was told under oath in committee hearings that Kentucky taxpayers have never failed to make the contractual 13.105% to teachers' retirement. In 2023 taxpayer contribute 28% to teachers' retirement, 44% in 2022. So taxpayers not contributing their fair share that is not the problem. It was also found that unearned enhanced benefits awarded, those enhancements applied retroactively, and an array of pension spiking schemes and scams have led to benefits levels that are not sustainable. It has led to over $40 billion dollars in unfunded public pension liability in Kentucky. Our kids and grandkids will inherit this problem. Legislators and teachers don't seem to care about the financial stain and stress their demands are causing. If they would accept the buyout proposal it would resolve this issue once and for all. Through the buyout Kentucky educators could be retiring with an estimated $120,000 dollars in annual retirement income. You mention two decades. What happened 24 years ago? The stock market tech bubble exploded. The NASDAQ lost over -30% of its value THREE YEARS IN A ROW. That wiped out the portfolio surplus they claimed to have had and then some. With the enhanced benefits in place the pensions system was not able to recover. Kentucky has added about $1.75 billion in public pension debt every year since. But nobody here, including the host and panel do not want to talk about that. Their focus is on the poor poor teachers' who are struggling to get by on 2-3 time the retirement income of social security recipients. State public pension system are in trouble because of greed and ignorance on how the generate wealth through investing.
It seems that being ignored is a clear sign that their employers do not much care for them - at least not for their futures; so why beneficiaries chose to stay in such high-risk situations is a mystery. I'm sure some is wishful thinking on their part (e.g. things will get better), but it's a risky choice just the same. If beneficiaries are that risk tolerant, then they bought that risk. The general public already did their part through taxes paid, nothing more is owed from the general public, local or federal.
Great presentation. I wish they would have mentioned that hedge funds & private equity firms pay politicians generously. Sam Bankman-Fried was mentioned who paid Ohio politicians during the 2022 mid-terms.
Thank you! And yes, you are spot on!
Amazing video bro
Thank you Richard!
Can Ted or someone like him do audits to the pensions in Canada?
Department of Education *(only!)* has 4000 employees, the fewest of any Cabinet Department, and a budget of *(only!)* 70 Billion dollars.
It seemed to me that they were all wanting to say that the managers of their pension funds are basically thieves. I guess they can’t legally say that because they would be sued. The fees and bonuses are also ridiculous. These teachers’ plans are being plundered. I hope the audits happen and the pensions are put on the right track.
Well said! Thank you
Who is the teachers employer for the contributions?
Taxpayers. Kentucky's private sector taxpayers are getting absolutely raped of their earned income by elected lawmakers in their attempt to keep the state public pension system from going insolvent. Public pension system are corrupt and dirty as hell.
Teachers are state employees, the states' get their operating income from taxpayers, therefore taxpayers contribute to teachers' retirement. If you look at the financial report's taxpayers contribute more to teachers' retirement than teachers do. I've been studying Kentucky's public pension crisis for 8-10 years. Taxpayers' contractual obligatory contribution is 13.105%. In 2023 taxpayers contributed 28.77% of payroll to teachers' retirement. In 2022 43.33% of payroll. In 2021 31.52% of payroll. The 90% of Kentucky private sector taxpayers are getting financially raped by the legislature to keep Kentucky teacher retirement from going insolvent. In the 2024-2026 budget bill they allocated $20 billion tax dollars to "shore up" teachers' retirement. It's shameful.
In 2023 it cost Kentucky taxpayers a total of $224,700,000 million dollars for administrative fees and external cost. That's just the KPPA plans. Public pension systems have turned into cash cows for those in charge of managing the system. Kentucky's public pension systems have turned into very expensive redistribution of wealth programs. This can't possibly end well for the 90% in Kentucky's private sector.
That's insane!!! Criminal!
I think the managers gets millions of dollars for their performances due to being professional thieves. They receive big rewards for stealing from the workers.
Private sector taxpayer gets an FU and middle finger.
Very well said!
I wonder if SS insurance have been audit? s
You will own nothing and be happy per Klaus Schwab
Let's Go Brandon! 😂
Ha!!!
If 56 year old teachers can retire with full benefits then a big problem is the benefits were absolutely too rich. Those are the level of benefits government employees in Greece were getting before the country went bankrupt. The teachers don't want that message out there though.
My wife retired at age 55, 34 years of service and receives $59,000 annually gross in just the annuity. Longevity runs in her family. If she needs 30 years of retirement benefits it will take $1.77 million dollars to cover her retirement. If you do the math there was enough set aside for her retirement to cover 5-6 years of retirement. That's why Kentucky is over $40 billion dollars in unfunded public pension debt. That's why in the 2024-2026 state budget they allotted $20 billion dollars to "shore up" Kentucky's public pension system. A buyout is the solution to almost every state public pension crisis. Legislators don't won't to hear. Public servant, especially teachers, do not understand the financial struggles and burdens it places on private sector taxpayers in state government attempts to try to financially pacify them. Legislators and public servants can't seem to comprehend the fact that defined benefit plans are simply not sustainable.
Always the ignored and forgotten victim in the public pension crisis, except for their earned income, the private sector taxpayers. In 2023 Kentucky taxpayers were forced to contribute $2.63 dollars to teachers' retirement to every $1.00 members of teacher's retirement contributed. In 2023 the 5 plans governed by the Kentucky Public Pension Authority; Kentucky taxpayers were forced to contribute $6.96 dollars to every $1.00 KPPA members contributed. This is not from Kentucky taxpayers not contributing their obligatory contribution. It's from enhanced benefits not prefunded by plan members, those enhanced benefits applied retroactively and a variety of pension spiking scams and schemes. It ends well for the Kentucky's public service sector but not the private sector taxpayer. It's a massive loss of earned income. A buyout plan I wrote for Kentucky educators would easily yield $120,000 dollars annually to cover pension benefits. I have a meeting with a University of Louisville Professor of Economics on April 18th to discuss this further. For Kentucky it is the only fiscal responsible way out of their public pension crisis.
I disagree with not perusing the 62/30 law in Minnesota. A teacher that is 62 years old right now with 30+ years of teaching experience is unable to retire with their full benefits if they missed out on the "Rule of 90" in Minnesota. They would have to wait to retire a 67 to get 100% of their pension. At least us old teachers would be able to retire with full benefits before age 67....