A costly way to address the pension crisis: Why federal bailouts are a bad idea

Washington Times ^ | 01/24/2019 | Joshua Rauh

[outpostinmass2]

Corporations have long understood that “over-promising” pensions.

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It a little more than just that. Accounting rules changed under FASB 81 and FASB 106. Companies now had to account for retiree benefits (health and pensions). Before this rule many pensions and retiree health plans were allowed to be pyramid schemes where the workers were essentially funding the retirees. It works okay as long as costs don’t go up too high, the company stays in business and there are more workers than retirees. Too many corporations either went belly-up, had big layoffs and retirees lived long into their 80’s. Pensions are a fairly new institution most received them after World War II. Prior to World War II only the military, railroad industry and police and fire received pensions. All dangerous jobs where the odds of dying on the job was high.

[mountainlion]

And government employees don’t pay into Socialist Insecurity.

Government employees under the FERS retirement system DO pay social security. CONgress probably doesn't.

[NorthMountain]

And when the money is gone, it’s gone. Defined benefit pension plans were a really bad idea.

[Uncle Sham]

"Blame politics and money managers, not the retired blue collars. AND, while we're giving free shit to illegal immigrants, our fathers deserve to be supported."

This is first and foremost, a UNION problem, to be resolved between the UNION and those greedy bastards who worked for it in the hope of getting a filthy rich pension on the back of the taxpayers. Those retired blue collared types helped this come about by joining and supporting that union and buying into it's deception and lies and contributing to it's damaging politics. NOT.MY.PROBLEM.

Asking for taxpayers to bail out a corrupt union is unconstitutional. Our taxes are paid to be representative of our interest. We were never given a chance to vote our interest as it pertains to unionized federal/state work forces.

[Lurker]

Your Dad was a fool for believing the promises of union leaders and politicians.

Not my problem.

L

[John Locke]

I sympathize with your dad. I worked fulltime until 73, but had no expectations of a funded requirement. My Mother told me the truth: never trust the government with your money, because they will cheat you.

This is no dark secret: it was laid out explicitly by Samuel Smiles in 1875 in a book called "Thrift". But far too many people were seduced and deceived by the "welfare state". For which I hope the deceivers pay in blood, and pay in full.

[farming pharmer]

100% agree with you.

I've got the means to support my parents when the money runs out. Many do not. At that point the pension problem becomes the taxpayer's problem whether you like it or not.

[Uncle Sham]

"I've got the means to support my parents when the money runs out. Many do not. At that point the pension problem becomes the taxpayer's problem whether you like it or not."

Those who have stolen the money know that this will not happen. That's why they are doing everything possible to destroy this country and anger it's citizens to the point of anarchy and geopolitical division. Once the good ole USA no longer exist, they are off of the hook with all of the stolen money and none of the responsibilities associated with where it came from. The baby boomers were great to steal from but now, as they are retiring in larger and larger numbers, the thieves are unable to meet the promises they made thus the never ending attempt to break this nation apart. No nation, no promises delivered.

[PapaBear3625]

already LOCKED into the contract

Federal Bankruptcy judges often don't give a damn about what goodies some contract promised, as Detroit pensioners discovered

[morphing libertarian]

The constitution of Cal protects the pensions of public employees. So the state has to find the money because their pensions, once approved, are ‘locked” in.

I also believe I recall judges upholding pensions in other states. But can’t cite.

[farming pharmer]

Not my problem.

If.You.Pay.Taxes.It's.Going.To.Be.Your.Problem.Whether.You.Like.It.Or.Not.

Unless you're evading taxation, of course. If you are, let us know your secret...

[farming pharmer]

I sympathize with your dad. I worked fulltime until 73, but had no expectations of a funded requirement. My Mother told me the truth: never trust the government with your money, because they will cheat you.

Yeah, I kind of wondered about that too in my 20s - I've been putting away 15% of my gross in a 403(b) since about age 27.

There's no retirements in my profession unless you make your own.

[Lurker]

Nope.

Not.
My.
Problem.

Sorry your dad did something really dumb. But as my grandad used to say “Stupid is supposed to hurt.”

L

[PapaBear3625]

The constitution of Cal protects the pensions of public employees. So the state has to find the money because their pensions, once approved, are ‘locked” in.

Michigan Constitution also guaranteed pensions. Didn't matter. Federal bankruptcy law, and the judges who administer it, supersedes state constitution.

[morphing libertarian]

good luck with that