Steve C asked:
Millions and millions are beginning to find out that the pensions they worked for all their lives have just vanished! Under current law, if the employer goes out of business there is no recourse; if the union mishandles the pension funds there is no recourse; if the stock market takes a dive and pension funds are lost there is no recourse. American is aging; by 2020 over half the population will be over 65 years of age. Yet we allow the pensions of America’s workers to be placed in jeopardy. This makes no sense to me at all. The current set of laws allows employers and unions to play a shall game with pension funds. The employer gets a tax deduction merely for “earmarking” pension funds without having to actually part with the cash.
Millions and millions are beginning to find out that the pensions they worked for all their lives have just vanished! Under current law, if the employer goes out of business there is no recourse; if the union mishandles the pension funds there is no recourse; if the stock market takes a dive and pension funds are lost there is no recourse. American is aging; by 2020 over half the population will be over 65 years of age. Yet we allow the pensions of America’s workers to be placed in jeopardy. This makes no sense to me at all. The current set of laws allows employers and unions to play a shall game with pension funds. The employer gets a tax deduction merely for “earmarking” pension funds without having to actually part with the cash.
I think it’s time this country treated pension funds as employment taxes and had employers make deposits in to secure trusts, insured by part of the earnings. No more of this paying in to the union pension fund!
Antonio
See link below. Most union pensions are handled by professionals.. Only a few are managed directly by the union - those are the ones where you can get ripped off.
–investments.html
Comment by spicertax — February 18, 2008 @ 2:13 pm
For participants with large benefits like the protection you receive from the pbgc by federally supported company called the.
The facts defined benefit guaranteed if the fund in cash to the pbgc the fdic on your bank account this is analagous.
Comment by John the Actuary — February 19, 2008 @ 5:14 pm