Posted on 12/30/2014 7:16:07 PM PST by grundle
I don’t even remember if he complained. He probably shrugged his shoulders said “that how it goes,” and trudged off to work.
State funded and union pensions are why I have my own 403(b) plan and my own investments in real estate.
What is sad is the rank and file of most unions do not hold their leadership accountable. My experience is they come to expect greed and corruption.
So willing contributors to democrats took it in the shorts and I am to haZ an upset why?
Note, not one of these people was chained to their employer. Ergo, they willingly gave their cash.
Unions have no obligation to the employer, the public or their members. Unions only have loyalty to unions. For those who, for decades, say “I’m a union person”, it is time to eat crow.
Step aside, Paul Ryan. The Rats will give Granny and Pa a nice push off the cliff instead.
I suspect corporations will be wanting the same deal. While most corporations ended their defined benefit pension plans, there are still millions of corporate retirees drawing on underfunded legacy defined benefit pension plans. Some of the underfunding is due to managements from time to time changing the actuarial assumptions so they can pull money out of the fund.
Don’t be surprised to see Wall Street and the multinationals quietly lobbying Congress for a stealth rider in one of the thousand page Christmas tree bills Congress loves to pass giving corporations the ability adjust legacy retiree defined benefit pension plan payments instead of meeting their contractual obligations. I’m sure Boehner and McConnell will be glad to do this favor for the Chamber of Commerce. Maybe changing pension law for corporations can be a rider on the amnesty bill so they’ll get Democrat votes.
The typical defined benefit pension plan of a US corporation is funded at 70% of obligations. If Congress changes the law, corporations will be off the hook to fully meet their promises to retirees and can simply cut benefits by 30% while continuing to pay out tens of millions of dollars in executive bonuses.
After all, who is going to look after retirees? Not unions, not Republicans, and not Democrats. Certainly not Obama.
Having served on a Union Pension Fund board of trustees as an employer group representative, I have some insight and mixed feelings about this story and want to share the thoughts.
First of all, as union membership declines during decades where life expectancy has climbed, the actuarial statistical numbers have worked against the Pension Funds, most of which are managed by the trustees of the fund and not by the union or the companies that pay the employees the benefits that get contributed.
Often in these multi employer union setting the employers might have five members on the board and the union has five members or some other equal formulation. It is in the employers interest to have the fund be solvent to avoid “unfunded pension liability” which can impact employers in a court finding.
Often the funds are much more professionally managed then the unions or the individual companies that participate. This is because watch dog managers and attorneys are paid to do nothing but make sure the trustees manage the fund correctly and carefully. The fund I was on made sure that the funds were managed by four different investment firms with four different investment portfolio types. One in equity growth, one in bonds, one in T bills and one in Contrarian mid caps. No fund segment could have more than 1.5 percent in any one investment or stock. Rules and audits by independent firms were scrutinized.
So, lets say the economy tanks, and the interest rates stay very low for a long time, and then, the pensioners live to 85 instead of 80. What is the answer? Deplete the fund for current retirees? Make a legal claim against employers and current employees? No, the answer is to adjust benefits but to do it in a manner to do the least damage to all parties. The important thing is to do the correction early and adjust contributions and future benefits in an open and honest manner.
see 27
I hope the pensioners take this to the supreme court. Screw you Obammy & friends!
Oh my. That is a good idea
interesting
Bet the state of Illinois wishes could get same deal to balance its budget and get out from under pension obligations.
I did a short stint in that UFCW while working a second job stocking shelves at Stop n Shop....the officers are not elected by the Union members....it is a complete circle jerk among money sucking whores at the hall. Deorio was my locals president who was the former presidents secretary...the most unqualified wench who could give 2 sh_ts about the plebians who fund the entire show. The post office seems to be the only shop that was forced to fully fund their retirement ...why? I have no use for any Unions other than viable Tradesmen ...roofers/electricians/Plumbers/High steel/Carpenters....beyond that none are needed.
I wonder if during those 41 years your dad voted for and supported democrats because the union told him to? Well this is the price he pays now. So I must say I do not feel sorry for your dad.
Precisely. And then take the logical next step, and transition to a defined contribution basis.
The left and the unions have traditionally objected to defined contribution plans because they transfer investment and actuarial risk to the employees. Their unstated corollary is that defined benefit plans will always, somehow, be bailed out, at someone else's expense. That confident assumption is now collapsing, as municipalities, states, and eventually even the feds run of out road down which to kick the can. We are now in the early stages of what will eventually be a massive pension write-down because defined benefit plans are hitting the wall, and there is no one left to fleece.
Bet the state of Illinois wishes could get same deal to balance its budget and get out from under pension obligations.
Wouldn't it be great if the politicians had to live with the rules they force on everyone else– like, say, Obamacare?
My father has voted Republican since Reagan's first term.
So, you're saying that your not bright enough to realize that Democrats & Republicans are two sides of the same coin? How many of those companies that underfund pensions are headed by 'Republicans'?
Thank you for your link. I appreciate your comments, and I understand the dynamics you are addressing.
To me, the important goal is to set up a retirement fund fully funded by the employee with matching funds as part of the contract/employment agreement.
If you do this, take a healthy sum each month over the decades, the retirement fund can be self-sustaining.
If I pay $250 a month and my employer pays $250 a month, in a year I have $6000 saved away. Over 40 years this would amount to $240,000 dollars, and that would not include compound interest over the decades. This could easily be a million dollar fund by the age of retirement. Slap on social security too, you’ve got a very healthy retirement income that could last you as long as you live. And then you would have a large legacy to hand down to your family. Very cool.
And this doesn’t even take into account the second wage earner in the family, that would also have a retirement income of substantial worth.
What seems to take place is that they take funds from the employees, toss it into a massive pool and invest it that way. And then when the union membership declines, and input does as well, those funds can’t sustain the retirees pensions.
To me that’s just poor planning. Perhaps you have valid reasons why things can’t be arranged this way. I would only respond that until it is, we’ll always risk telling our retirees that too bad, you can’t stay in your home, you can’t go out and enjoy life. You may be able to scrape by until you die, but don’t bet on it.
That’s wrong IMO.
“I may not agree with union promises, but once they make them, they should have to live by them.”
You can’t get blood out of a turnip, especially when the turnip was bled out to fuel liberal politicians.
Corruption cares not who it hurts, only who it enriches. Throw ‘em in jail them you did it.
Unless the turnip is getting transfusions from the taxpayers.
http://www.thetruthaboutcars.com/2014/12/us-treasury-9b-lost-auto-industry-bailout/
LOL!!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.