Skip to comments.Insurer Warns Some Pooled Pensions Are Beyond Recovery
Posted on 07/01/2014 7:02:04 PM PDT by Lorianne
More than a million people risk losing their federally insured pensions in just a few years despite recent stock market gains and a strengthening economy, a new government study said on Monday.
The people at risk have earned pensions in multiemployer plans, in which many companies band together with a union to provide benefits under collective bargaining. Such pensions were long considered exceptionally safe, but the Pension Benefit Guaranty Corporation reported in its study that some plans are now in their death throes and cannot recover.
Bailing out those plans seems highly unlikely. But if they are simply left to die, the collapse of the federal insurance program is all but inevitable, the report said, leaving retirees in failed plans with nothing. It added that the program is more likely than not to run out of money within the next eight years as plan after plan collapses.
The multiemployer pension sector, which covers 10 million Americans, represents a mixed bag of financial strength and weakness. The aging of the work force, the decline of unions, deregulation and two big stock crashes have all taken a grievous toll. Ten percent of the people covered are in severely underfunded plans, the study said.
The agency does such a projection every year, but this years version was unusually late and unusually dire.
Congress has already held several hearings on multiemployer plans, and for months the unions and companies that jointly sponsor them have been meeting with Congressional staff members to come up with responses. One working proposal calls for retirees in multiemployer plans to give up part of their core benefits to save money. That idea is extremely controversial because federal law has sheltered retirees from such cuts for decades. Proponents say it is the only way to keep some plans going.
(Excerpt) Read more at dealbook.nytimes.com ...
The EXEMPT Congress makes a profit by STEALING
from would have been future generations
(if they did not arm al Qaeda).
It’s all a Ponzi scheme??
You don’t say!!!
It’s going to be fun watching all those retired government employees with their big fat pensions have to take jobs at Mickey D’s and Walmart.
Not to mention the outrageous government spending including lavish salaries, benefits and pensions that will definitely crash and burn as the burgeoning socialist government runs out of opm. Gonna be a rough ride ahead.
won’t be able to get them, all those new democrat votes pouring over the boarder will have taken them.
There will be haircuts for bond investors then pensioners.
Could someone explain this in very simple English.
I get a pension from one of the telephone companies.
Well the least Congress can do is make sure the bridge overpasses aren’t leaking when it rains, provide some cots to sleep on, and MREs for the next wave of retirees after taking their tax dollars for 40 + years...
Life can be hard for those who sell their souls to Satan.
Pull back the collar of his red fireproof suit and “look for the Union label”.
You're going to be waiting a while. The retired government employees are going to be the *very last* to take the hit.
And when it finally comes to them, there won't be any jobs at Mickey D's or Walmart. By that time we may be reduced to urban foragers to survive...competing with disease ridden Mexicans for the canned goods in the abandoned grocery stores.
First I have heard of this.
Multi-employer pension plans are most often used in industries where workers may move from company to company.
From an article found on the web: “For example, employees of all companies that were once part of Bell Telephone have an agreement whereby service in all companies is counted toward a single pension benefit.”
One of the largest multi-employer pension plans is TIAA-CREF.
This article implies, to me, that not all multi-employer pension plans are in bad shape. But, if it were me, I’d pull out my pension documents and read them. And if I still couldn’t figure it out, I’d call the pension and speak with someone there and have them direct me to documents that confirm whatever they’re telling me. Don’t depend on what someone says over the phone. Ask for documentation.
Your pension is probably fine, for now. But the bubble is gonna burst sometime so it would behoove everyone to be as prepared as possible.
Little Dick Durbin and other Dems see a pot ‘o gold in private 401k’s, IRA’s, SEP’s, Roth IRA’s, etc.
They want to ensure you will make a GUARANTEED return with Government backing....$9-10 trillion that they say is untaxed.
Social Security and Medicare-Medicaid are broke...so are government pensions, all oversubscribed and underfunded.
Mark my words, FedGov will try to steal private savings in my lifetime, I’m 45. It’s the fat cookie the politicians salivate over to keep their power. Sadly, I think that is the day bullets fly in CW2.
Ever downloaded a movie online? $250,000 fine and five years in prison.
The NSA is cataloging these federal crimes and when the time comes they will use the asset forfeiture laws to confiscate all your property. With the asset forfeiture laws, they never actually have to charge you with a crime. All they have to do is ACCUSE you of a crime and they can take your stuff. Once they take your stuff under asset forfeiture, you seldom get it back.
That's how it will go down.
Thanks so much for the info-—I’ll give them a call.
What times we live in.