"This Is Going To Be A National Crisis" - One Of The Largest U.S. Pension Funds Set To Cut Retiree

zero hedge ^ | 4/20/16 | Tyler Durden

[biff]

I too am sick to death of our foreign policy spending all over the world and not here where it belongs. However, as to the truck drivers/teamsters retirement money, they pissed a lot of it away on politics and just plain old thievery. I fell sorry for the retired folks who were expecting and were promised comfortable senior years and now are getting the screw job.

This same thing is going to happen nationwide though with county, city, state, private and even SS retirements not being there for us. So who gets to pay for it again? Why us taxpayers that’s who.

It makes me want to run down the street just killin’ politicians but I don’t have enough ammo!!!!!

[The Working Man]

My first impression/response to:

“The Central States Pension Fund is currently paying out $3.46 in pension benefits for every $1 it receives from employers, which has resulted in the fund paying out $2 billion more in benefits”

Well DUH! With more people out of work the participation rate is collapsing.

My Bet is that the ‘Fed’s’ will use this and/or something else that will pop up soon to ‘Federalize’ all of the pension funds and 401(k)’s as well as individual IRA’s to ‘FIX’ this ‘serious problem’.

[2001convSVT]

Thanks for that excellent post on why the American standard of living is at best stagnate. I would also add that fiat money is working against us and that the only way to save for the future is through investing in tangible assets (i.e. real estate, precious metals, blue chip stocks/bonds or arms)to preserve family/generational wealth.

[riverdawg]

“The government was going to take care of everyone in these defined benefit plans ...”

ERISA set up the Pension Benefit Guarantee Corporation, which gets no funds from taxpayers. The PBGC has systematically overestimated income from employer premiums and underestimated future benefit payouts. Using any sensible accounting principles, it has been bankrupt for decades.

[napscoordinator]

You’ve got that right. It’s the same with social security. They spent all the money and now cry we’re running out of money. Politicians are pure evil. Both sides.

[IncPen]

Everything’s working out great. Just lump this in with Obamacare.

[Diana in Wisconsin]

Yeah, probably soft as hell from livin’ the Lush Life, too! ;)

Here come the Union Freepers to frag us in 3...2...1...LOL!

(My Beau is a Union Guy. Not the LEAST bit thuggish.)

[stephenjohnbanker]

This is what happens when you promise high pensions without a clue how they will be paid.

[Libloather]

http://www.freerepublic.com/focus/f-news/3419441/posts

[Retain Mike]

I did say each employer with a plan had paid a premium and not the taxpayers. I will speculate that since almost all state and local government plans are covered by ERISA they always pressured the politicians to rollback any efforts the corporation might have made to adopt legitimate policies. If I remember correctly General Motors refused to change its ways even though it alone would have used up the balance in the fund. With such a feeble mandate the agency had to fail.

[riverdawg]

” ... since almost all state and local government plans are covered by ERISA they always pressured the politicians to rollback any efforts the corporation might have made to adopt legitimate policies.”

I don’t know of ERISA rules apply to federal, state and local government pension plans, but the PBGC does *not* cover them. The taxpayers are ultimately on the hook for any under funding of those pensions.

http://www.pbgc.gov/wr/find-an-insured-pension-plan/pbgc-protects-pensions.html

[Retain Mike]

I am fairly sure about that, because the text covered defined benefit plans, but then knowing our politicians they could have exempted them. The way the courts in Oregon keeps slapping down the changes the legilature tries to make it sure sounds like they are covered.

[meadsjn]

Pension fund projections are based on a properly functioning, growing economy.

The globalist commies of both party establishments kept strangling our economy, selling us out to our enemies.

Let them all hang. Or burn.

[CGASMIA68]

One reason I took a lump sum

[Chode]

100%... the top rats will get theirs and to them that's all that matters

[stephenjohnbanker]

Never changes.

[Chode]

yup, rats is as rats does

[stephenjohnbanker]

Give your city or business over to a Democrat, and watch it COLLAPSE under their skilled supervision : )

[Chode]

ah yes, the condensed blessings of socialism...