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These pension plans are at risk of going broke
CNBC ^ | July 12, 2019 | Lorie Konish

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 ...

TOPICS: Business/Economy; Culture/Society; Government; Politics/Elections
KEYWORDS: pensions; unfunded; union
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To: Mom MD
My 81-year-old father worked for a subsidiary of General Electric yes entire life. He was offered a pension that no despite not being multi employer is also in danger. Towards the end of his career he was also allowed to invest in an early 401k which he did. Problem was the only via cola in the 401(k) was GE stock. There were no other options. We all know how well GE stock has done lately. It’s a shame that he planned for his entire life to have a secure retirement and that is now all in danger. Fortunately for my parents and their children are more than willing to help out where needed, but a lot of seniors are not that fortunate.

Same here, my mom and dad can count on us children to help them if his pension goes insolvent (though I do tease them about picking vegetables on my farm!). BTW, my mom lost some tens of thousands of dollars on GM stock that she inhereted from her father when GM went belly up.
21 posted on 07/12/2019 7:35:51 PM PDT by farming pharmer
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To: where's_the_Outrage?
Hard for me to have sympathy for those that are face with the reality that their "pie in the sky" retirement plans

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.

22 posted on 07/12/2019 8:01:01 PM PDT by ETCM
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To: Fightin Whitey

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.

23 posted on 07/12/2019 8:54:44 PM PDT by tbw2
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To: cherry

“...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%.

24 posted on 07/12/2019 9:36:16 PM PDT by FreedomNotSafety
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To: akalinin

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.

25 posted on 07/12/2019 9:43:12 PM PDT by FreedomNotSafety
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To: tbw2

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.

26 posted on 07/12/2019 9:48:54 PM PDT by ImpBill (Republicrats/Demicans ... A pox on both their houses!)
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To: where's_the_Outrage?

Look forward to a dozen big municipal bankruptcies causing most pension plans to implode...

27 posted on 07/12/2019 9:56:54 PM PDT by northislander
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To: plain talk

For those that can, invest in stock. I have my money in AMD.
The stock has doubled since Dec 2018

28 posted on 07/12/2019 11:27:10 PM PDT by minnesota_bound
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To: Mom MD

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

29 posted on 07/13/2019 2:11:50 AM PDT by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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The rats in cities and states are looking for more cash to spend

30 posted on 07/13/2019 3:50:27 AM PDT by ronnie raygun (
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To: dynachrome; where's_the_Outrage?
401Ks and IRAs will probably be used to bail out pensions, especially in marx-o-crat run cities. The prediction is that you (and I) will receive gov’t bonds in replacement of a certain pecentage of your funds.

Bingo. Not only is that "The Plan", it is already drawn up.

All that is needed is the next "Crisis." And that's coming.

31 posted on 07/13/2019 3:57:20 AM PDT by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: Mom MD
50 years ago most people worked for one company most of their life and that company guaranteed them an income in retirement.

We weren't living as long when those retirement plans started, so it was a lot easier to make good on those promises.

32 posted on 07/13/2019 5:00:32 AM PDT by TwelveOfTwenty (Prayers for our country and President Trump)
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To: where's_the_Outrage?

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.

33 posted on 07/13/2019 5:40:57 AM PDT by Texas Eagle (If it wasn't for double-standards, Liberals would have no standards at all -- Texas Eagle)
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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.

34 posted on 07/13/2019 5:45:10 AM PDT by AppyPappy (How many fingers am I holding up, Winston?)
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To: TwelveOfTwenty

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

35 posted on 07/13/2019 6:35:30 AM PDT by Mom MD
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To: cherry

When you get down to truth, 2/3 of what he was promised was too much. 1/3 was actually deserved

36 posted on 07/13/2019 6:44:37 AM PDT by bert ( (KE. NP. N.C. +12)There were Democrat espionage operations on Republican candidates)
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To: where's_the_Outrage?

At least they aren’t talking about making FRAUD Illegal again, because that kind of fix would be devastating for their campaign fund raising.

37 posted on 07/13/2019 7:43:11 AM PDT by eyeamok
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To: dynachrome

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.”

38 posted on 07/13/2019 7:50:44 AM PDT by firebrand
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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.

39 posted on 07/13/2019 7:53:22 AM PDT by firebrand
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To: minnesota_bound

You have all your investment money in one stock?

40 posted on 07/13/2019 8:15:14 AM PDT by plain talk
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