Taxpayers could be on the hook for pension bailouts

Discussion in 'Current Events' started by cheryl, May 26, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    VERNUCCIO & LOTT: Look for the union fable - Washington Post

    Taxpayers could be on the hook for pension bailouts

    Flanked by representatives from the International Brotherhood of Teamsters, YRC Transportation and ABF Freight Systems, Sen. Bob Casey, Pennsylvania Democrat, proposed a massive bailout for the Teamsters' and other union pension funds on March 22. The deceptively named Create Jobs and Save Benefits Act of 2010 (the Save Adorable Fluffy Bunnies Act was taken, apparently) should really be called the Bail Out Irresponsible Unions Act. That is exactly what the bill would do.

    After denying for years that their pension funds were in trouble, labor unions of late have been forced to admit that union-managed multi-employer pension funds are in wretched shape. Moody's Investor Services estimated multi-employer pensions were underfunded by $165 billion in 2009. Because of labor mismanagement, millions of current and former workers' retirements are in real danger. Labor is doing everything it can to buy time and shift the blame elsewhere.

    The Teamsters' Central States Fund has been woefully underfunded for years. It had only 47 cents on every dollar owed in 2007 and likely is much worse today in light of the recent economic downturn. United Parcel Service understood the severity of this problem and paid an astounding $6.1 billion in withdrawal fees in 2007 just for permission to back away from that actuarial ticking time bomb.
  2. klein

    klein Für Meno :)

    Well, I hope you have a conservative government that simply says "NO WAY"
    Just like we did with GM.

    A company pension plan has no part of government. Simple as that.
    It's just a bonus companies decided on their own to do.
    If it's gone, that's it. Finished.
  3. bbsam

    bbsam Moderator Staff Member

    And this is what MrFedex wants to buy into?:knockedout: