Skip to comments.These pension plans are at risk of going broke
Posted on 07/12/2019 6:14:15 PM PDT by where's_the_Outrage?
About 1.3 million Americans could have their retirement funds at risk if Congress can't come up with the money to pay the benefits people were promised.
That is because a number of multiemployer pension plans are on the brink of running out of money.
This week, Congress took a stab at solving the problem with the markup of the Rehabilitation for Multiemployer Pensions Act.
Though it garnered far less attention than the testimony of Federal Reserve Chairman Jerome Powell, who was on Capitol Hill talking about interest rates and the economy, it was no less important. Retirees' financial futures hang in the balance if nothing is done, according to lawmakers.
(Excerpt) Read more at msn.com ...
Mostly agree, but not all pensions were "pie in the sky". Much of the blame is on the bureaucrats and politicians who underfunded the pension funds and the corrupt unions who effective sabotaged them by allowing spiking and concurrent disability, allowing folks to sell back vacation and sick time, work massive overtime, double dipping, and get fake promotions for their final year to end up getting 50%-100% more than they should.
Defined benefit (pension) plans need to die, for everyone. Convert them all to defined contribution, aka 401K.
That’s been one reason why we poured money into being debt free. Pay off the mortgage, and the rate of return equals the interest rate on the mortgage. Pay off all other debt, and you need less money to live on later.
“...if they screw him again...” By “they” do you mean Congress? How is it “again”? Congress didn’t screw your husband. By “screw” do you mean that if congress does not vote to take money from someone else and give it to you that you have been screwed? Sorry but it is the taxpayers getting screwed not you. Every penny you get from taxpayers is a gift. Whether that’s half the pension on 20%.
Here you go... The Teamsters and most other unions promised pensions but never bargained for the money to be put in the bank. They took the money and put it into wages and current benefits instead. The only pension promise that counts is the one where money goes into a third party trust and is invested by a fiduciary.
Your father trusted his union and he should look to his union to make him whole.
Debt Free! It is quite amazing how comfortable one can live on a relatively low amount of monthly cash when they retire if they aren’t having to service huge debts.
Having met that goal at age 59 has allowed my wife and I to enjoy life here in our non working years in a very comfortable manner.
Best advice anyone could give to young folks looking towards the future.
Look forward to a dozen big municipal bankruptcies causing most pension plans to implode...
For those that can, invest in stock. I have my money in AMD.
The stock has doubled since Dec 2018
My father worked for GE for over 30 years. It was a source of pride that GEs pension plan was always fully funded. Then came Jeff Immelt
The rats in cities and states are looking for more cash to spend
Bingo. Not only is that "The Plan", it is already drawn up.
All that is needed is the next "Crisis." And that's coming.
We weren't living as long when those retirement plans started, so it was a lot easier to make good on those promises.
How the hell are they going broke? The stock market is going through the roof. The people doing the investing should be put in jail for theft.
Virginia was smart. They started charging us for our pension and not just a little. They also created a hybrid-pension plan that appealed to younger workers. Thankfully, I came to the game late and I have a 401k set up for retirement.
u fortunately people like my 81 year old father are now caught in the middle through no fault of their own. i know no one likes unions and my dads situation does not deal with a union but have some compassion for the elderly facing loss off their pension. the union bosses and those that scammed and bankrupted the system should be in jail but there are a lot off elderly folks hurting through no fault of their own
When you get down to truth, 2/3 of what he was promised was too much. 1/3 was actually deserved
At least they aren’t talking about making FRAUD Illegal again, because that kind of fix would be devastating for their campaign fund raising.
New York and New Jersey are in big trouble with paying pensions too.
I was at a meeting when this first became a widely known problem, years ago. David Patterson was asked if there was any way out of a pension contract.
His answer was an eloquent “No.”
I remember him saying this and I don’t remember what his reasoning was. Voluntary enlistment seems so much more constitutional, and it has helped many of his constituents.
You have all your investment money in one stock?
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