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I'm leaving the U.S. next year and hopefully never coming back, I'm moving to a place that has less people of European descent. In 40 something years when I'm at retirement age, I won't need a pension to support myself and I'll be financially secure. Any decisions that Obama is making now concerning Americas future I fully support, namely because any negative impact his decisions will have in the future won't affect me and I think will be much deserved...
Best of luck to you and hope you end up with a bright future and secure retirement.
And you are right..Americans deserve what is coming to them.
I don't see a bright future either and am in the process of making my own "plan B" should things start to fall apart in my lifetime. Thankfully though I'm a dual citizen so I have options.
“But we have to pass the [health care] bill so that you can find out what’s in it....”
Nancy Pelosi, March 2010
You don't remember the debates, but I do. They talked about nothing else for a year. Either way it does not compare to this, where a 4000 page monster is created with no debate whatsoever and drips with special interest crap and has 48 hours to push it through.
It is bad enough that the retirees are getting no interest on their savings, now this.
Before the late 60's, there was minimal federal involvement in regulating private pension plans. A series of spectacular liquidations left pension beneficiaries with nothing. Congress created ERISA who created a fund to guarantee pension benefits in the event a company could not.
Companies with employer pension plans pay an insurance premium to a federal fund to guarantee future benefit payments, come what may.
The private pension benefit is capped on a per beneficiary. Government was never obligated to make pension beneficiary's whole.
Multi- employer pension plans are more complicated than single employer. When companies that participate in such pension plans fail, who should make pensions of the out of business company whole in terms of future pension payments? Should surviving companies and their employees be required to make up the difference for employees of another company?
Pension payouts are dependent upon companies and their employees making future payments. Technology, outsourcing and consolidation are strategies used to avoid business failure.
Should the federal government increase individual and corporate tax rates to make all pension beneficiaries ( a small percentage of the total population) whole? Should the federal government add to the federal debt to make all pension beneficiaries whole?
Beneficiaries of private pension plans also recieve Social Security. Multiemployer pension benifits cuts occur on a sliding scale by age/ remaining actuarial years.
Well they have been underfunded for decades and the PBGC annual report to Congress has stated this as well.
What did they do...why kick the can down the road.
So now people have to pay and it's going to be the retirees getting cuts in pensions they've been getting for years.
I hope the folks that think the government will watch over you and make sure all is well have read this.
The government ignored this for decades..upping the premium on employers would go against all the government stands for.
Cutting individual pensions seems to be the answer.
What other reasonable alternative is there?
Labor essentially bargained for portability of pension benefits across employers within the same sector. An employee was able to switch employers within the same multiemployer plan without any impact on his pension. The risk of future payments was mutualized amongst all plan participants.
The cumulative impact of increased longevity, business failures, mergers/ acquisitions and technology means there are fewer active plan participants and employees than there are beneficiaries.
Labor essentially bargained for portability of pension benefits across employers within the same sector. An employee was able to switch employers within the same multiemployer plan without any impact on his pension. The risk of future payments was mutualized amongst all plan participants.
The cumulative impact of increased longevity, business failures, mergers/ acquisitions and technology means there are fewer active plan participants and employees than there are beneficiaries.
Who should pay?
When corporations get an annual report that says they are losing money and must do something then they do it. The government..they ignore it until they can't and the wrong people suffer.
Why bother auditing and reporting if you don't plan to do anything until the coffer runs dry ?
Another great reason to trust the private sector with your pension. In a booming stock market these thieves are crying about being broke? Just another scam to keep the dividends with the investors instead of wasting the money on retired working folks.
BTY - was this POS put into the bill by a Democrat?
It is bad enough that the retirees are getting no interest on their savings, now this.
Retirees have the choice to put all or some of their savings at market risk for a better opportunity to earn a higher ROI, like everyone else.
Or perhaps the FRB should raise interest rates / increase the cost of borrowing just so that seniors can get a better return off insured passbook savings accounts.
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