Rustbelt
Rookie
- Jun 2, 2010
- 31
- 8
I cannot believe that these people are even thinking about this. If they do this they will kill the Democratic party for years.
Now wouldn't that be a shame?
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I cannot believe that these people are even thinking about this. If they do this they will kill the Democratic party for years.
Congress pushing $165 billion union pension bailout
A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.
As FOX Business Networks Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.
Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.
The mother of all taxpayer bailouts is right around the corner.
Union bosses want taxpayers to foot the cost for bailing out the labor organizations many failing pension plans that millions of their members are counting on to be there when they retire. Unfortunately, the average union pension plan has only enough money to cover 62 percent of its financial obligations.
Such a low level of funding puts those plans on the governments critical list. Pension plans funded below 80 percent are considered endangered by the government. Below 65 percent is critical. With union membership declining, that puts these funds into a tailspin from which theyll likely never pull out.
The governments Pension Benefit Guaranty Corporation only guarantees pensioners $12,000 a year, should their pension plan fail. Good luck retiring on that.
But as the economy sours, theres increasing pressure to bail out workers from failing unions. Last July, for example, the PBGC agreed to take on $6.2 billion in pension liabilities from bankrupt auto parts manufacturer Delphi. And thats just one company. In 2007, the PBGC was already running a deficit of nearly a billion dollars. Things will only get worse as the PBGC is expected to assume $86 billion in liabilities by 2015.
Congress pushing $165 billion union pension bailout
A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.
As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.
Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.
The mother of all taxpayer bailouts is right around the corner.
Union bosses want taxpayers to foot the cost for bailing out the labor organizations’ many failing pension plans that millions of their members are counting on to “be there” when they retire. Unfortunately, the average union pension plan has only enough money to cover 62 percent of its financial obligations.
Such a low level of funding puts those plans on the government’s critical list. Pension plans funded below 80 percent are considered “endangered” by the government. Below 65 percent is “critical.” With union membership declining, that puts these funds into a tailspin from which they’ll likely never pull out.
The government’s Pension Benefit Guaranty Corporation only guarantees pensioners $12,000 a year, should their pension plan fail. Good luck retiring on that.
But as the economy sours, there’s increasing pressure to bail out workers from failing unions. Last July, for example, the PBGC agreed to take on $6.2 billion in pension liabilities from bankrupt auto parts manufacturer Delphi. And that’s just one company. In 2007, the PBGC was already running a deficit of nearly a billion dollars. Things will only get worse as the PBGC is expected to assume $86 billion in liabilities by 2015.
the article is lacking in critical information....
I found this on the site of the Insurance...PBGC
Welcome To PBGC new user button
PBGC is a federal corporation created by the Employee Retirement Income Security Act of 1974. It currently protects the pensions of more than 44 million American workers and retirees in more than 29,000 private single-employer and multiemployer defined benefit pension plans. PBGC receives no funds from general tax revenues. Operations are financed by insurance premiums set by Congress and paid by sponsors of defined benefit plans, investment income, assets from pension plans trusteed by PBGC, and recoveries from the companies formerly responsible for the plans.
I guess I would need to know exactly how this supposed bailout would work?
Do they charge the companies more that decided to buy this insurance for their retirement plans?
If they can recover these funds from the private sector that bought the insurance eventually, then I suppose I could agree to it.
But I have lots and lots of questions about how these corporations mismanaged their pension funds?
the retirements are not paid by unions are they? Retirement pensions are pensions paid by the corporation or business the person works for are they not?
So the BUSINESS that hired union workers messed up, right?
Regardless, if the money comes out of tax payer's money, then I am AGAINST this measure....especially at this time in the game...too many other people have lost their butts in their 401k's that they were forced in to if they wanted any company retirement, much more so that the 38% less these workers are going to receive if no bailout is done for their retirement pensions...
people only having SS as their retirements are going to be forced to take less in benefits when the time comes as well...
where the heck were the gvt agencies that regulates keeping retirement pension funds funded at 80%? What did the corporations or businesses do with the money they were SUPPOSE to be funding their pensions with go to...the boss's salary, the stockholder's profit/earnings?
At what point do we have to admit that we have no money?
At what point do we have to admit that we have no money?
Then, why are people on the right, such as Piyush Jindal screaming for Federal intervention in the oil leak in the Gulf of Mexico? If we have no money, I mean...
At what point do we have to admit that we have no money?
Then, why are people on the right, such as Piyush Jindal screaming for Federal intervention in the oil leak in the Gulf of Mexico? If we have no money, I mean...
Maybe it's because gulf sourced oil fuels 10% of our economy. Wiping out that industry along with the gulf seafood one will make the U.S.'s financial situation even worse.
Maybe it's because gulf sourced oil fuels 10% of our economy. Wiping out that industry along with the gulf seafood one will make the U.S.'s financial situation even worse.
There are already predictions of this causing another dip in the economic recovery that is allegedly taking place.
So the BUSINESS that hired union workers messed up, right?
At what point do we have to admit that we have no money?
the article is lacking in critical information....
I found this on the site of the Insurance...PBGC
Welcome To PBGC new user button
PBGC is a federal corporation created by the Employee Retirement Income Security Act of 1974. It currently protects the pensions of more than 44 million American workers and retirees in more than 29,000 private single-employer and multiemployer defined benefit pension plans. PBGC receives no funds from general tax revenues. Operations are financed by insurance premiums set by Congress and paid by sponsors of defined benefit plans, investment income, assets from pension plans trusteed by PBGC, and recoveries from the companies formerly responsible for the plans.
I guess I would need to know exactly how this supposed bailout would work?
Do they charge the companies more that decided to buy this insurance for their retirement plans?
If they can recover these funds from the private sector that bought the insurance eventually, then I suppose I could agree to it.
But I have lots and lots of questions about how these corporations mismanaged their pension funds?
the retirements are not paid by unions are they? Retirement pensions are pensions paid by the corporation or business the person works for are they not?
So the BUSINESS that hired union workers messed up, right?
Regardless, if the money comes out of tax payer's money, then I am AGAINST this measure....especially at this time in the game...too many other people have lost their butts in their 401k's that they were forced in to if they wanted any company retirement, much more so that the 38% less these workers are going to receive if no bailout is done for their retirement pensions...
people only having SS as their retirements are going to be forced to take less in benefits when the time comes as well...
where the heck were the gvt agencies that regulates keeping retirement pension funds funded at 80%? What did the corporations or businesses do with the money they were SUPPOSE to be funding their pensions with go to...the boss's salary, the stockholder's profit/earnings?
It's like Fannie Mae & Freddie Mac. Taxpayers are the deep pockets for when they run into financial problems. Congress recently lifted the $400B bail out ceiling for FM/FM.
If this bill passes, we'll be bailout out union pension funds for a far larger amount.
A better question to ask is: what good is the union leadership when it can't adequately monitor the pension plans it negotiates for the membership who pay dues?
There are seperate Union managed retirement accounts. Not sure if the corps contribute anything to them though.
There are seperate Union managed retirement accounts. Not sure if the corps contribute anything to them though.
there are? who pays for them? union dues pay for their own retirement?
What a joke. This is proof that socialist Unions are a failure. They can't even keep their word with their own sheople workers. ~BH