More than a million retired and current truck drivers, construction workers and other union workers could see their pension benefits cut now that Congress passed a proposal aimed at shoring up some of the nation's biggest pensions.
Tacked on as an amendment to the government's $1.1 trillion spending bill, the proposal was approved by the Senate late Saturday night.
While those sponsoring the pension proposal say it is "the only available option" to save failing multiemployer pension plans, other groups -- like the AARP and the Pension Rights Center -- are crying foul.
Multiemployer pension plans cover more than 10 million workers and retirees in the trucking, manufacturing and other industries. But many of these plans have struggled in the last decade as they grapple with an aging workforce and major investment losses from the recession. Plus, many larger employers have pulled out of the plans.
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Pensions should be small, not big enough to buy a 20 room mansion.
ReplyDeleteHopefully reform will not mean the taking of those whose pensions are small and meant only to be a subsidy.
Defined benefit pensions are dinosaurs and many went unfunded, i.e. cities, states etc. THe 401k allows the individual to invest in his retirement and not just sit back and expect a payment from the employer. You either cut the current benefit or you may lose the benefit altogether.
ReplyDeleteYou could tell this was coming. Look how underfunded all these municipal pensions are. The private ones aren't much better.
ReplyDeleteIt's what happens when people siphon contributions into pet projects, overspending, and shareholder profits.
We will know when it's about to drop when they can confiscate your 401(k) or IRA.
And here's more news for you... if you're under 40, good luck getting your social security.
R E V O L U T I O N.
ReplyDeletePoliticians make glorious promises but LATER deem them mere "suggestions".
Guarantee that none of those politicians are looking at a reduction in their benefits.
It should scare the living daylights out of EVERYONE who has a pension plan, a savings account (they are stone broke for the next 40 years --- do you think they will stop at "pension reductions??? they can't....), a 401(k), CD's, etc.
You blind and stupid cheerleaders better start thinking about what Jefferson predicted what would our government would turn into and exactly how "we, the people" should handle it.
What?? Who is Jefferson? You mean the TV show guy??? With the dry cleaning business, right?
Keep cheering. Right past the moment when they take YOUR money.
Now go look up "Thomas Jefferson".