Pension deficit at $34 Billion

Started Nov 17, 2012 | Discussions thread
Bill Randall
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Re: Pension deficit at $34 Billion
In reply to Lee Jay, Nov 19, 2012

ljfinger wrote:

Bill Randall wrote:

ljfinger wrote:

Bill Randall wrote:

LeRentier wrote:

Bill Randall wrote:

Chato wrote:

Bill Randall wrote:

Disgusting.

http://www.boston.com/business/personal-finance/living-longer/2012/11/16/pension-insurer-runs-record-deficit/KqAVWSO7Fejg2gaG2bBkPN/story.html

This is another example of welfare for the rich (and one I didn't know about). Essentiually, letting the taxpayers pick up on the obligations of Corporations.

Dave

Very true. And another example of both parties, Democrats and Republicans, allowing it.

Pension Benefit Guaranty Corp. is a government agency. Since this deficit has been going on for some time, I have to ask who is overseeing this agency? Fire them!

Tax payers should not have to subsidize this agency. I propose that instead of tax payers bailing them out, our Congressmen and Senators be obligated to cover the deficit.

I also propose that we give everyone in Washington a cut in pay and benefits.

My understanding is that this agency picks up the tab when the private funds fail so why would anyone expect them not to go down and broke ?

The agency insures retirement programs of various companies.

But it's NOT funded by government dollars.

Companies pay for the insurance to cover the employees retirement in the event the trustee or the company go broke. The insurance premiums go to the government agency and should be high enough to cover all anticipated company or trustee defaults. If the trustee or company have insufficient funds then the government agency must pay with government funds. Apparently the insurance was being sold at a price too low to cover the losses. If the insurance cost is not high enough then government funds would not be needed. This is my understanding.

As far as I know, they never get to use government funds. They're running an asset deficit because more companies than expected have gone away or failed to properly fund their pensions.

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Lee Jay
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The retirees have to be paid in cash (check). Asset deficit means you do not have the assets (cash) to cover the expense of the retirees. Where does the cash come from?

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