Posted on 05/24/2010 11:36:59 AM PDT by Painesright
Taxpayers could be on the hook for another $165 billion if a bill to bail out private union pension funds makes it through Congress. A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.
As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.
Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.
It’s hard to say at the moment what the chances are that the bill will pass. A hearing is scheduled Thursday, which will give the public a sense of where political leaders sit on the topic, said Willis.
Just last week President Obama said there would be no more bailouts.
(Excerpt) Read more at foxbusiness.com ...
It won't save any jobs. Hiring me and my friends at 350K a year would save jobs and help people -- and it wouldn't cost anywhere near that much.I don't have THAT many friends.
I would bet that it IS the government worker unions this bill addresses.
How bout tar and feathers for the union Boards. Fiduciary responsibility. They need to be tried, convicted and sent away. Can’t wait for November.
Actually I think it started with the expedited bankruptcy / govt takeover of GM which totally screwed the bondholders to benefit the UAW - both working and retired. You get to pay taxes to provide $3000 a month and silver plated health care to 52 yr old UAW retirees.
Unionized employees through their bargaining locals and the employer's bargained for their members to have a certain pension benefit in addition to their wage. The union with probably participation by the employers set up an independent pension fund that invested and managed the funds that the union members and the employers set aside as contributions to fund that prescribed pension benefit.
Due to (1) poor management or (2) shorting the funds needed to properly fund that actuarial risk to give employers and union employees more money to keep for themselves the funds have now a certain percentage of “un-funded” pension liabilities to meet the expectations the two parties bargained for as measured against government rules regulating pension funds.
Now there are all sorts of rules about who pays, who is at fault and what the resolutions are in cases like this under established law. One solution would be for the employers to pay more for the un-funded liability. That makes it real hard to get employers to sign up with that union.
Another option is to have employees take only the government guaranteed portion of the benefits making it likely to be cut at ten years or have the benefit cut to make the funds provide only the benefit they can fund.
But, in order to buy votes and do paybacks to a small percentage of his constituency, a US Senator wants the general taxpayer to pay for this privately bargained expectation's short fall to the tune of 200 Billion dollars.
So if you are an individual trying to save for your retirement income (what is what a pension does), you first have to pay for this Senator's buddies to get their retirement package (that they mismanaged) made whole before you get to keep an after tax share of your own income.
Theft. Theft by tyrants.
All of them.
Scerw the unions, they spent the money on corrupt politicians and now the pols want to give it back out of our pockets. If they pull this off they better lock the capitol doors and never come out because there are gonna be some really ticked off tax payers, with pitchforks.
How in the Hell will we pay for this?
You pretty much summed it up perfectly.
I’ll just add one thing... you mentioned that before an individual will be able to save for his own retirement, he will have to pay taxes that will then be used to pay for the retirement of politically favored unions. You are 100% correct, but the evilness does not stop there.
Next, they are going to come for your retirement funds (401K, IRA, etc) to help pay the interest of our ballooning national debt (A temporarily fix until they can get the hell out of Dodge with cushy lobbyist jobs and lifetime pensions of their own).
So, responsible savers are going to be robbed at least twice. Once when they pay taxes and then again when their savings are confiscated in order to pay the interest on the debt. Not to pay down the debt mind you, just to pay the interest!
Oh, they’ll give you a “fair” return in exchange for you loaning them your savings in this time of unprecedented crisis... which was created by them... worthless guarantees backed by the NO LONGER good faith and credit of the U.S. Gov’t!!
That is where we are... when will it stop?
I completely agree. He's doing the bidding of his masters on the left . . .
Surely, the Republicans will stop this from happening - they don’t get Union votes anyway, or not many.
If this does happen, America as we know it is doomed - there will be no rolling back the Obama BS.
Also, anyone that goes into the private sector seeking a career is going to have a rough row to hoe from now on.
November is where it stops or, failing that remedy, where those that see the cessation mandatory cease to cooperate with the theft.
In trying to preserve their savings and protect their small retirements they will of course be labeled racist and Nazi.
It should be obvious that this type of bill will further divide the Country making a tenuous economic situation that much more stressful.
It’s a carrot to motivate the Socialists.
Does anyone know where Fox got this figure? TIA
“In trying to preserve their savings and protect their small retirements they will of course be labeled racist and Nazi.”
And don’t forget “selfish” and “greedy”.
Anyone who does not want to share 50% or more of his income with looters is clearly a selfish, greedy bastard.
Or better yet...
The poor must be brought to care that the largesse given to them is TAKEN from someone else in the first place.
Fillibuster this.
The American people do NOT want this, and will support a fillibuster.
GOP already bad guys to Unions. It will make no difference, Unions will spend money to attack GOP no matter how they vote. Since Unions now make up a very small percentage, I want this voted down.
This is utter BS!!!!!
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