Posted on 12/08/2022 4:41:40 AM PST by zeestephen
The White House said the Central States bailout would help 40,000 workers and retirees in Michigan, 40,000 in Ohio and 22,000 in Wisconsin...
(Excerpt) Read more at msn.com ...
A critical flaw in the Constitution is the lack of a process for putting a failed state into receivership and taking over its assets without forcing its liabilities on the rest of the Union. These blue states need to be reduced to territories and lose their voting rights until they become solvent, if ever.
They sure kept that quiet until after the election. We are living under the delusional that we’re still a free country.
All you teamsters remember to send 10% of your payout to hunter in care of the “big guy”.
Because they invested with Bernie Madoff and lost it all.
Until there is death of the election fraudsters, America is no more.
There is no penalty for election fraud..
More money laundering.
I didn’t have a pension, why am I paying for theirs?
FTX?
When I see things like this, what I hear is “Democrat slush fund payment”. Who will track the accounting on this? It’ll go straight to D campaigns and pockets.
That said, you’re correct - how is this even legal? Did Congress vote on it? No.
From that bankrupt cryptocurrency loser?
Guess Vegas needs more casinos?
The stock based mutual funds in my 401K “have fallen more than expected”. When should I expect my bailout?
I respectfully disagree. It's not a problem of investing too high a portion into equities, but not enough. Certainly not enough to keep up with the impossible demand of high pension payout for decades in retirement.
The PBGC is to pensions what the FDIC is to banks. Basically pensions pay a kind of insurance premiums to the PBGC agency, to be bailed out later if needed. The problem is, one of the requirements of the PBGC it to have too high a portion of the portfolio in somewhat safe funds like bonds, treasuries, and money markets. Thus it limits growth overall. If the pension managers don't have a high portion in safe funds, the PBGC raises the premiums. Thus, PBGC disincentivises pensions from growing well.
In my financial Sunday school class for years I've suggested a retirement portfolio that's about 70% in various equity funds (including a high-yield bond fund)/ 30% in various bound funds (including some treasury funds and money market). With a 4% annual withdrawal the portfolio gains enough to keep up with both the withdrawal and inflation (well, until Brandon hyperinflation maybe). During stock downturns (in which you don't want to pull your 4% withdrawal from a fund that's down), you have not only 1/4th of your funds in usually safe funds to help you (30% safe funds can handle 7 years of a stock downturn at 4% withdrawals), but also many equity funds to choose from (if spread out among 30 or more asset classes, there's always a few that are up even if most are down). That's me trying to keep up with inflation.
Pension managers have the same kind of problem. Even if they don't have to keep up with inflation (for the most part the pension payouts don't increase enough to keep up with inflation, if they increase at all), they do have to keep up with an increasing number of retirees demanding their pension checks beginning. Their PBGC insurance plan tells them not to be aggressive enough in investments to keep up with this huge demand.
More from the article-
“...the assistance ‘the largest ever award of federal financial support for worker and retiree pension security’ and the largest from a program created by Biden’s pandemic relief law, the American Rescue Plan.”
“The pandemic-relief bill Biden signed in March 2021 allows some financially troubled multiemployer plans to apply for assistance. The White House said the program would help more than 200 multiemployer plans, keeping the pension plans of 2 to 3 million workers solvent and paying benefits through at least 2051.”
Unbelievable!
Socialism, a transfer of payments from the hard working successful people to the union non workers.
Actually, this is at least the second time you have bailed out the Teamsters Pension Fund.
Last time - 2008 - The Great Recession
Actually, now that I think about it, Obama got credit for that bail out, so it must have happened in 2009, or later.
The only possible argument for what is being done is that if the pensions are allowed to fail, which they will if no action is taken, they will end up the responsibility of the PBGC. That will cause the PBGC to fail, which means taxpayers will be on the hook at that stage. The best explanation of what is being done is a short cutting of the normal federal government expenditure process. Biden got a slush fund created in his Build Back America scheme and he is releasing funds from that source to resolve this. The crime in it is not the transfer of funds, but the fact that the decision to do so was not by explicit legislation where Representatives and Senators would have to stand and be counted on this issue. More of the “never let a good crisis go to waste” manner of governing.
The problem with the PBGC is that the premiums are not risk based.
It is being paid under the camouflage of Covid Relief legislation.
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