Most defined benefit pension plans are nothing but Ponzi schemes. Plans are now unraveling because of demographics. An increasing number of retirees, needing untenable returns, are supported by fewer and fewer people putting money in the system. Democrats sponsored a bailout scheme. Will it pass?
Pension and Investments reports Sen. Sherrod Brown to Unveil Multiemployer Loan Program Legislation.
Sen. Sherrod Brown, D-Ohio, plans to introduce legislation that would allow struggling multiemployer pension funds to borrow from the U.S. Treasury to remain solvent.
The bill, co-sponsored by Rep. Tim Ryan, D-Ohio, could be introduced later this week or shortly after. It would create a new office within the Treasury Department called the Pension Rehabilitation Administration. The funds would come from the sale of Treasury-issued bonds to financial institutions. The pension funds could borrow for 30 years at low interest rates. One restriction for borrowers is they could not make risky investments.
The bill would also fund a program at the Pension Benefit Guaranty Corp. to finance any remaining needs of pension plans borrowing from the new program. "Any money needed for the PBGC would be a tiny fraction of what it would otherwise be on the hook for if Congress fails to act," said an analysis by Mr. Brown's office.
Mr. Brown told a group of retired Teamsters in Ohio on Monday that the bill will be out shortly.
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10 comments:
Great! We (our government) can loan them (pension funds) the money that we (our government) borrow. Selling treasuries is us (our government) taking out a loan. And, if their Ponzi scheme isn't working then how are they (pension funds) going to pay off their loan? So then where does the money come from to pay off the loan we (our government) took out? Oh, right. Higher taxes that "WE" pay or we (our government) borrow the money we need to pay off the loan we (our government) took out.
Democrats don't want us to have tax cuts so they can help their cronies.
Looks like the Unions need us to bail them out!
Enough with these "bailouts", we, our government, has bailed out enough corporations and banks to give every American citizen $1,000,000+ ! When does it stop? They do not come along and "bailout" the average citizen when they go broke, why should we keep paying for others bad investments while the administrators of these groups are sitting in million dollar homes and receiving 6+ digit incomes from robbing the working class? They should be giving up their homes and investments back to those they took it from! But once again that would be holding people responsible and the liberal dems can't let that happen unless you are of the working class, then you go to jail for such mismanagement of other people's monies!
Public pensions, not unlike social security, were all based on the premise that most people would not live longer than 70. Boy, was that a miscalculation!
Most public service employees have the ability to retire at 55 and get a FULL pension for the remainder of their lives, which could be longer than they worked!
It's not the employees fault, but the bureaucrats that caved to the unions that put these policies in place. Did you know that the government passed a law that requires companies to have future liabilities fully paid NOW, but EXEMPTED public pensions. This is why most private pensions are fossils and there were no changes for public pensions.
How convenient.
so we are going to bail out a problem child with an IOU . These mismanaged pensions need to fail.
Yes in deed and I'm getting mine whole there's funds available, LMAO!! what a mess this country is
Get ready Salisbury, and if day gets his way wicomico county your next!! Jake days famous last words " my damn folk festival is more important than their retirement fund
7:31 Public pensions are different than SSI. SSI is a federal program that the Federal government has the responsibility of abiding by the Federal agreement with the tax payer / elderly. Public pensions are the responsibility of the State and Local governments that established these pensions. Not the Federal government.
12:36 but they were both based on an early demise of the recipient. 7:31 was right in the comparison.
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