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There's an entire generation that was assured, repeatedly, that their Social Security would take care of them in their later years. It was a time when gov't was still trusted. People worked hard, put their kids through school (without loans) and knew that one day they'd retire on SS. Nobody predicted the country's debt or the raiding of the SS fund by both parties (to use for other purposes) never to be replaced. Gov't owes seniors the money it took from the social security fund. It wasn't a gift to the gov't. It wasn't even a loan. It was 'theft by unauthorized taking'.
With the advent of IRAs and other similar investment options, and education about it, awareness grew of possibly the need for additional safety cushion in retirement. Many sought employment *because* there was a pension at the end of service. That would take some 20 years in most cases, and there was a generation of workers that didn't have that long left anymore. Those who were in the middle of their careers worked for that pension, assured that it would be safe and always there for them. Well, guess what. The gov't is reaching for that, too. It's like a hungry parasite living off its host.
Most elderly had no savings before Social Security. How come?
Of those who did, they likely lost it when their banks failed during the Great Depression.
Government created old age insurance in the form of Social Security.
Government also created the FDIC to protect depositors.
Government expanded Social Security to include Disability almost 60 years ago.
Over the years, Government expanded Disability benefits by definition, beneficiary and age.
How many seniors would be up a creek without a paddle without government?
However, the topic being pensions - since pensions were a part of an individual's retirement planning, those who have them should not now be faced with cuts. The gov't needs to curb itself and rein in spending, not reach into every pocket they can identify.
What has government spending got to do with funding of multiemployers pensions?
Without government, there would be no guaranteed minimum payment in the event of a plan's insolvency, a condition that existed through the 60's.
Government spending includes SNAP and Section 8 /other housing and utility assistance for seniors.
I have a couple of 401-k's and lost a bundle on them when the stock market crashed. I pulled those investments out and have them all in pretty much safe stuff right now. But is anything really safe these days when pensions can be slashed?
These days?
There was no guarantee of minimum benefits for the 100 years between the creation of the first pension plan and the creation of the PBGC.
PBGC is self- funded by employer's insurance premiums, rates set by Congress.
PBGC never guaranteed 100% payment.
PBGC has run annual deficits in all but 4 years of its existence, 1996-2000.
Most pension plans were, and still are, counting on fund growth to be driven by the return on investments. In my view this over the top expectation of the financial markets ability to provide for future obligations was a bad plan and should have not been allowed by law.
Those who seem to have forgotten this unreal expectation also seem to forget that our government is not managed by or for it's citizens, with the exception of those citizens who rule over government from the heights of their Wall Street offices.
Jim Hightower was fond of saying that when we find ourselves baffled by government's actions we need only to "follow the money" to find the truth. In this case that path will inevitably lead to the doorstep of all those beholden to the corporate interests that is driving this POS legislation.
I laugh at those who infer that Obama runs anything, he, like all pols, marches to the tune of America's real rulers, who are they? Follow the money...
Reason the pension funds are getting low is union jobs are being filled by illegal aliens.. they cut back on union employees as the illegals get trucked in from other states to work.. this has been going on in an increased fashion since Nafta was passed and illegal aliens are welcomed over here since the Clinton administration.. Democrats have welcomed illegals since the early 90's.. and it has gotten progressively worse. It is not getting any better either since we have Obama in siding with illegals and promising amnesty.
The unions have stated that the union workers they have now ,the numbers are higher for those collecting probabley collecting at an earlier age, probably because of bad times, lay offs and they need to collect earlier.
And every year one gets a statement about their pension funds.
Did any bother to read them ?
Did any contact their union reps about what was being done regarding the dwindling fund ?
Now it's all "shock and awe" and "How could this happen?"
Apathy my friend, apathy.
Actually they fear they will run out of money in 20 or so years.. so they want to cut back now.. The Pension Rights Center states this is not the appropriate action to cut pensions now.
17 years? I don't think so. I believe the federal law established by Congress, not the FDIC, is along the lines of "as soon as possible " after a bank fails. In reality this has been hours- a few days.
Is it possible that this communication confused FDIC statute with recovery of unclaimed property laws set at the state level?
As soon as possible is not possible if the bank is broke and lost their capital to bad debts and millions of foreclosures.. they lost the principal, now just the interest in each home the people walked away from because the value plummeted.
There's an entire generation that was assured, repeatedly, that their Social Security would take care of them in their later years. It was a time when gov't was still trusted. People worked hard, put their kids through school (without loans) and knew that one day they'd retire on SS. Nobody predicted the country's debt or the raiding of the SS fund by both parties (to use for other purposes) never to be replaced. Gov't owes seniors the money it took from the social security fund. It wasn't a gift to the gov't. It wasn't even a loan. It was 'theft by unauthorized taking'.
With the advent of IRAs and other similar investment options, and education about it, awareness grew of possibly the need for additional safety cushion in retirement. Many sought employment *because* there was a pension at the end of service. That would take some 20 years in most cases, and there was a generation of workers that didn't have that long left anymore. Those who were in the middle of their careers worked for that pension, assured that it would be safe and always there for them. Well, guess what. The gov't is reaching for that, too. It's like a hungry parasite living off its host.
Social Security was never intended to be a full retirement system, it was meant to be a supplement. The figures on the lack of savings either through 401K's or just plain ordinary savings are staggering
Most elderly had no savings before Social Security. How come?
Of those who did, they likely lost it when their banks failed during the Great Depression.
Government created old age insurance in the form of Social Security.
Government also created the FDIC to protect depositors.
Government expanded Social Security to include Disability almost 60 years ago.
Over the years, Government expanded Disability benefits by definition, beneficiary and age.
How many seniors would be up a creek without a paddle without government?
The government should uphold the rights of the people.. if someone deposits their money in the bank , he should have a guarantee to be able to get their money out. This is what should be to protect the peoples good faith in their savings. It is THEIR MONEY.
If people put into social security they should have the benefit of social security when they are too old to work and don't want a welfare check.
Many people die before they collect SS, yet that money is lost if they have no dependents.. also many die and collect just a few SS checks .
They were pushing this since 2012.
What unions saw were failed pensions that would get handed to the PBGC and they'd be out of a job managing that money.
Either way the pensions would be reduced but with this change the unions still get to own them.
And you can bet that any reductions will guarantee that they get to keep their jobs.
Conflict of interest if you ask me.
I can't speak about any pension plan but my own and the union did not control or administer it. Each month that I worked (from 1977 through 2004) the funds were sent to the Automotive Industries Pension Trust Fund, which is administered by Associated Third Party Administrators. It was in fine shape until the Great Recession of 2008, created by the Wall St. bankstas who most certainly knew that the various deals concocted to securitize bad mortgages were bound to fail and cause a massive collapse but they got theirs so why should they give a damn about what would happen to the average investor? They fought against any kind of government oversight and regulation because they knew full well that what they had going on was nothing more than a Ponzi scheme.
Some here say that retirees should have been doing their own due diligence, or that plan administrators should have been doing it but isn't that really the job of the rating agencies who gave those Triple AAA ratings to garbage? I do put some of the blame on all the politicians from the far right all the way to the far left who have been willing and even eager to listen to and believe Wall St. when it tells them that regulation and oversight by outsiders was not needed, that they would do the job themselves.
Clearly nothing was learned from the S & L crisis of the late 80s, early 90s so 2008 was just the next version. How long before the next crisis?
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