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Monday, October 09, 2017

A coal miner pension bailout could set the stage for a multi-trillion-dollar taxpayer bailout. Don't do it

A bipartisan group of federal lawmakers from coal country have introduced an updated bill to use federal taxpayer dollars to pay for the broken promises of one particular coal mining union—the United Mine Workers of America, or UMWA.

If passed, this bill could be the tip of a multi-trillion dollar taxpayer bailout. President Trump, whose sympathy for the miners is well known, should beware, along with Congress.

That’s because the UMWA is not the only pension plan that has made promises to its workers and failed to set aside the funds to keep those promises. Out of nearly 1,400 union-run or “multiemployer” pension plans across the U.S., 85 percent of them are less than 70 percent funded, and they have promised $500 billion more than they can pay.

The second proposed “funding” mechanism is a taxpayer loan to the insolvent pension plan—which is no different than a straight-up bailout. When there’s virtually no chance of repayment, that’s not a “secure loan.”



Anonymous said...

Well, when Obama declared his war on coal and shut down all the mines, there was no longer any coal miners contributing into the pension fund every week. DUH! The whole plan depended on a continued, healthy industry.

Same with Social Security, not only is the baby boom generation outnumbering the working population, the working population now has fewer, lower paying jobs thanks to shipping them all overseas.

Our POTUS needs all the help he can get correcting these huge damages, and I hope Congress can get a clue.

lmclain said...

We are getting ready to write off Puerto Rico's 73 billion dollar debt and several states are in similar circumstance.
The house of tissue paper cards the Democrats have built in cities and states ACROSS THE NATION with their financial shenanigans and corruption will be collapsing pretty quickly and it won't be anything to look forward to....
Democrats ---- your fake promises and your constant pandering to every group that says they deserve free stuff and if you give it to them, they will vote for you are coming home to roost.
Democrats, you have destroyed our prosperity and security ON PURPOSE.
YOU should be imprisoned. Why? Because YOU wrote laws that put "we, the people" in PRISON for the VERY SAME THING you do on a daily basis and claim you are "serving the people".
You are criminally responsible. CRMINALLY.
Oh. I forgot.
Two Sets of Laws
You can't stop cheering.
It's unreal.

Anonymous said...

Should not write off any debt. PR should be held accountable by the Democrat Politians that run PR and the Unions should be held liable and have to pay these pensions. They controlled it and the bosses are living high on the hog. Not the Tax Payers responsibility.

Anonymous said...

exactly5:19. the union / mov bosses have raped these funds for overpaid salaries, political funding.its called theft

Anonymous said...

Paging Richard Trumka. DOJ on the phone!

Anonymous said...

So, all these guys that spent their lives underground so you and I could burn kilowatts all night long, should be penny-less while they succumbed to black lung?!?!
If there's any group that deserves a pension, it's them. Not the people who retire at 55, then bleed the taxpayers for 40 years. That's bullsh@t