Posted on 11/27/2021 3:40:18 PM PST by Oldeconomybuyer
Democrats now assert their bailout of multiemployer union pension plans in March's American Rescue Plan Act was deeply flawed and are demanding the Pension Benefit Guaranty Corporation (PBGC) rescue multiemployer union pension plans from the act's botched rescue. Democrats' admission this bailout will cost much more than advertised should raise concerns about the real costs of the third massive bill they are rushing to enact this year with new social spending schemes.
The American Rescue Plan Act provided an $86 billion "taxpayer bailout" to some multiemployer union pension plans, according to the Congressional Budget Office, but not enough to make them solvent. Eligible plans will only be given enough money intended to fully pay benefits through 2051, leaving them no assets to meet remaining pension promises (incurred both before and after the act). Even lasting until 2051 can only happen if the act's questionable assumptions hold true - which is extremely unlikely as the senators who wrote the bill are now complaining.
This is because Democrats entangled themselves in the web of multiemployer union pension plans financial alchemy and based the bailout on optimistic hypothetical investment returns, instead of the market value of liabilities. Plans use this sleight of hand to value pensions at less than half of cost and is a key reason multiemployer union pension plans, along with state and local government pensions, are severely underfunded to begin with.
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Ha ha!
Just vote no. The unions themselves have to pay every dime they have into the pensions. They use some of the money to pay the union employees. And they use some to pay off the democrat party. So after they declare bankruptcy, the pensions can be sent to the pension insurance under the normal rules for a defunct plan.
Maybe they can lawlessly gift the Unions control of Apple or Microsoft?
Yeah. Companies paid the workers and are not in arrears to them.
The unions OTOH….
No. If the unions can’t pay that’s on them. Promised too much.
Made promises they couldn’t keep.
Didn’t Obama stimulus package 2008 already bail them out
I seem to remember when the Government pension guarantee bailed out the United airlines pilots pensions and they only got a tiny fraction of what they were promised.
I wonder what some Teamsters and Longshoremen would settle for the same treatment?
So they want to fatten the kitty of the criminal organization that serves as their principle money launderer?
The unions can go reproduce asexually, as far as I’m concerned.
if union pension plans are in danger, that seems to be a union problem, in that they will need to explain to their members why they didn’t invest the pension funds to grow in safe securities. It’s not nonunion people who need to be bailing out union people.
I used to write these plans. The companies pay into the pensions. They have no choice. They cannot withhold anything. Its the unions who have mishandled the money. Unlike other plans, governments or companies, the unions had all the money. Its 100% paid in full at the time the company pays a check. The union takes from the employee if there is a match and the company. Then all the union has to do is invest normally. And these guys have been skimming for years. The market is up huge. It would not have taken any skill to pay these pensions.
Anyway the taxpayers should not pay anything. There is insurance and if the plan goes belly up it pays 75 cents on the dollar. But before the pensions go belly up, the union should pay in every dime they have and declare bankruptcy.
The pilots got screwed because at the time they were required by law to retire at age 62 and the PBGC regulations drastically limited payouts to people who retired before age 65.
where is the investigation into why these plans have run out of money; when non-union plans were required by law to be fully funded.
I am not suggesting massive fraud, embezzlement; Democratic kickbacks, and gross mismanagement.
The Brandon sympathizing sclerotic bureaucracy will never in a million years investigate any aspect of union mismanagement and corruption.
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