Corruption in the federal bureaucracy

One of the things that has become clear recently, whether we're talking about regulation of Wall Street, regulation of deep sea oil drilling, regulation of coal mining, or whatever, is that federal regulators are now working for the companies they're regulating, not for We The People.

So why is that? Well, you can blame this on ole' Saint Ronnie Ray-gun again. In 1983, Reagan eliminated the Federal Retirement System for all new federal employees. New employees would pay into Social Security like everybody else, and then pay into a 401(k)-like plan, with the Federal Government providing some matching money.

There were two things that occurred because of this. The first is that the Federal Government had to start paying people more in order to come to work for the government. Much more. Federal employees today are paid salaries typical of private enterprise, whereas before Reagan did this, federal employees accepted less money up front in order to get more money on the back end when they retired with a federal pension.

The second thing is that the new system encourages corruption. Back in the days when you put in your 30 years and then retired with a federal pension for life, there was no percentage for corruption. If you accepted prostitutes and bribes from one of the companies you regulated, you would at the very least be fired, and then you'd be forfeiting your 30 year retirement benefits. But now if you're fired, you still have your Social Security benefits paid in, and you still have your 401(k) contents, and you can go to work for the company that gave you the bribe because you still know other people within the federal bureaucracy who might be bribable.

In short, eliminating the FRS a) made federal employees more expensive, and b) increased the incentive to accept bribes from the industries you regulate, or accept job offers from them in exchange for giving them what they want regulation-wise. Federal employees no longer have a reason to stay with the Federal government for the next 30 years, since there is no longer a pension waiting for them at the end of the line, so if someone offers a Federal employee a cushy job for the next few years if the Federal employee rules in favor of the company... well, there's no monetary reason to *not* do it. You're not giving up your federal pension, after all, because there *isn't* a federal pension...

So anyhow, that is why as the people covered under FRS have retired, and new employees have come in, that corruption in federal regulatory bodies has become rampant. Let that be a lesson to state and local governments planning on slashing their public employees retirement plans: That way leads to runaway corruption and higher personnel expenses overall. 'Nuff said.

-- Badtux the Pensionless Penguin