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How Pension Plans Beguiled Us (And how they will eventually tear apart communities)
FrontPage Mag ^ | 08/26/2013 | Prof. Mark Hendrickson, Grove City College

Posted on 08/26/2013 11:35:16 AM PDT by SeekAndFind

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1 posted on 08/26/2013 11:35:16 AM PDT by SeekAndFind
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To: SeekAndFind
The basic problem has been that pensions are a promise for the future, but nobody can guarantee the future.
--Prof. Mark Hendrickson, Grove City College




We are all interested in the future, for that is where you and I are going to spend the rest of our lives.
And remember my friend, future events such as these will affect you in the future.
-- Criswell, Plan 9 From Outer Space

2 posted on 08/26/2013 11:40:14 AM PDT by Dr. Sivana (There's no salvation in politics.)
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To: SeekAndFind

Too bad the ERISA does nothing about the Federal Reserve deliberately inflating away the value of the dollar and destroying the pension security of millions along the way.


3 posted on 08/26/2013 11:41:35 AM PDT by MeganC (A gun is like a parachute. If you need one, and don't have one, you'll never need one again.)
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To: SeekAndFind

I absolutely agree with the final conclusion.

In the mean time, legislation should be enacted that requires all those involved in pensions to send the beneficiaries statements as to what their pensions would be “as if” they were in a defined contribution plan. In short, they should be told what they would be entitled to if their pension fund was to close down today. At least this would provide a dose of reality and a means of informing beneficiaries just how bad the situation is.


4 posted on 08/26/2013 11:42:49 AM PDT by bjc (Show me the data!)
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To: SeekAndFind
ultimately, the only fair and viable (though still imperfect) system would be for everyone to have defined-contribution pension plans

The main thrust of the article is how defined plans are not viable because no one can predict the future. The author's final statement completely contradicts the main thesis. Does no one teach critical thinking or writing any more?

5 posted on 08/26/2013 11:44:38 AM PDT by Hardastarboard (Buck Off, Bronco Bama)
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To: SeekAndFind
The only solution to The Crazy is to go Traveller.

Don't live in a state where they take your money to pay off the Government Pirates of Pension, and don't own property, since it's not yours anyway.

Starve the .gov monkeys, as Tom Baugh says. I do know that the children are going to flip out very soon when they find out that they're working for 12-15 backs an hour to pay a retired Pension Pirate who gets paid 20-30 bucks an hour to walk out to the mailbox twice a month. Along with The Golden .Gov retiree health care, that the children will be paying out of their healthy young hides for...

Every time I think about it, it just blows my mind.

6 posted on 08/26/2013 11:47:12 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: Hardastarboard

Are confusing defined benefit and defined contribution?


7 posted on 08/26/2013 11:47:58 AM PDT by nascarnation (Democrats control the Presidency, Senate, and Media. It's an uphill climb....)
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To: SeekAndFind
Is it unrealistic for public service employees to understand that they have been played. That they have been used by politicians? That they and tax payers have been lied to.
Politicians who have promised groups better compensation or better benefits at the expense of the taxpayer need to be held accountable.
The day is coming on this earth, not in some afterlife, that the lying, pandering, self serving sons of bitches who sold our economy out and left us with compiling debt,that they will be held accountable.
They know it and there are growing legions of us that know it.
No wonder why they want to start another war. They need it to expand their police state.
8 posted on 08/26/2013 11:48:43 AM PDT by free from tyranny
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To: Hardastarboard
I swear some of these people construct logical chains something like this:

All men have beards.
Socrates is a man.
Therefore, defined pension plans should be available to all workers.

Just state a few statements which might possibly be true, then follow up with a non-sequitor which you wish were true. Maybe some folks will fall for the illusion that is all hangs together. QED.

9 posted on 08/26/2013 11:50:00 AM PDT by ClearCase_guy (21st century. I'm not a fan.)
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To: Hardastarboard
The main thrust of the article is how defined plans are not viable because no one can predict the future.

As he pointed out, it's DEFINED BENEFIT plans that are not viable.

Defined contribution plans are money shoveled to the receiving peasant every paycheck.

Defined benefit plans are why the .gov pirates have excrement-eating grins on their faces.

I'll bet my best friend in high school, who worked as a state forester, is retired and making 25-30 bucks an hour (from his defined benefit pension) - in his 50s.

10 posted on 08/26/2013 11:51:57 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: ClearCase_guy

See my post #10


11 posted on 08/26/2013 11:52:55 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: SeekAndFind

Too bad Mel Brooks doesn’t make a movie about the unfunded liabilities..

Oh wait. Where’s the humour in that?

Ticking financial time bombs across the land..

Now that is some series comedy.


12 posted on 08/26/2013 11:53:13 AM PDT by NormsRevenge (Semper Fi --)
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To: kiryandil

I feel foolish. I missed that crucial distinction. Thanks.


13 posted on 08/26/2013 11:53:59 AM PDT by ClearCase_guy (21st century. I'm not a fan.)
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To: Hardastarboard
The main thrust of the article is how defined [benefit] plans are not viable because no one can predict the future.

That's why he's for defined contribution plans.

14 posted on 08/26/2013 11:54:28 AM PDT by Toddsterpatriot (Science is hard. Harder if you're stupid.)
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To: SeekAndFind

Perhaps when they began the pension program, the communities should have had to put aside money for these workers kinda like the Post Office does. But of course instead of blaming the politicians, we blame the actually workers. Well too bad. They did what they were told and deserve their pensions.


15 posted on 08/26/2013 11:55:53 AM PDT by napscoordinator ( Santorum-Bachmann 2016 for the future of the Country!)
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To: ClearCase_guy
Part of the reason they're getting away with it. Most people don't even have the issue on their radar.

The Pension Pirates, of course, spend most of their later career pouring their promised gold through their fingers.

They KNOW how much they'll be hornswoggling the taxpeasants for.

16 posted on 08/26/2013 11:56:07 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: SeekAndFind

The failure of business to pay pensions will just keep driving citizens to more and more government. Combined with health care that’s the future. Those that expect to rely on private savings are screwed because inflation will erode savings when you expect to use them.

Politically, as business limbos lower to avoid pension and health costs people lose confidence in business and resort to government. Republicans are screwed.


17 posted on 08/26/2013 11:56:28 AM PDT by ex-snook (God is Love)
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To: Hardastarboard

He’s talking about defined-benefit versus defined-contribution. Another factor to consider is that many retirees received defined-benefit checks, without cost of living increases (colas), and they failed to keep up with inflation. A check received in 1985 that was okay barely allows one to live in 2013. That spurred unions to demand more so colas were inplemented, along with huge benefit payouts. The unions cut their own throats.


18 posted on 08/26/2013 11:57:24 AM PDT by roadcat
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To: napscoordinator
They did what they were told and deserve their pensions.

So did Teach's swabbies on the Queen Anne's Revenge. Doesn't make them any less pirates...

19 posted on 08/26/2013 11:58:50 AM PDT by kiryandil (turning Americans into felons, one obnoxious drunk at a time (Zero Tolerance!!!))
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To: napscoordinator
They did what they were told and deserve their pensions.

True. In the old days, government bled their best and brightest workers to the private sector, and receiving training and experience. That turned around over the last 15 to 20 years. Thousands would apply for a few open government positions, because of the inflated defined-benefit pensions and the insecurity of private jobs. It's those new workers who are the pirates, getting big payouts under generous terms versus long-time workers who put in 30 or more years.

20 posted on 08/26/2013 12:05:57 PM PDT by roadcat
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