Pension deficit at $34 Billion

Started Nov 17, 2012 | Discussions thread
Don_Campbell
Contributing MemberPosts: 953
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Re: Pension deficit at $34 Billion
In reply to Bill Randall, Nov 20, 2012

Bill Randall wrote:

Don_Campbell wrote:

Bill Randall wrote:

Don_Campbell 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.

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Lee Jay
(see profile for equipment)

You're asking them to look deeper into this than they are capable of looking. Knee jerk whining about government.

Don

Well that explains everything. I wish all posts were as helpful as yours - not. If you know so much I would appreciate it if you would explain it to me because I don't know. I have made several assumptions which may be false. Information is much better than sarcasm.

Bill,

I don't frequent this forum as much as some of you so I missed your annoyed reply until a few minutes ago.

I guess from reading your reply that you didn't notice that my post was not to you. It was a reply to Lee Jay expressing my opinion that the folks he was posting responses to were unlikely to understand. I said that because the average 6th grader can do a google search and find some answers. Such a concept. Instead, you thought it was my duty to educate you. I notice that since your post Lee Jay has tried to help you though this apparently challenging cognitive thicket. I'll add one thing.

I was well aware of who you were posting to. I thought I understood what the link was saying and, therefore, had no need to google. As soon as it was pointed out to me that I was wrong I did a google and yes, the info was there.

Hmm...It seemed to me as if you shot first, were told you were wrong and then decided it was my responsibility to lead you to the information instead of looking it up. In other words you needed to be told several times before bothering to look it up.

There is no rule on DPR that all information presented must be 100% correct. It is, to my knowledge, ok to be wrong, to make an error. Other posters are usually kind enough to point the error out as was done in this case by ljfinger.

You took personal offense when I said to Lee Jay, "You're asking them to look deeper into this than they are capable of looking. Knee jerk whining about government." You wrote to me with silly sarcasm instead of simply looking it up. Why?

Sorry Bill, but I think you proved my point that taking time to investigate is not as fun for you as blasting off about the government. If you're going to be sensitive then you should look stuff up when you're called on your blast-offs.

It is my opinion that if someone makes a mistake and they are ridiculed for it, this will discourage people from posting. Now I am not talking about humorous tongue-in-cheek comments, but comments like the one you made.

I'll try to be nicer.

With a google search on the name of the outfit, you could have virtually instantly found the site of the Pension Benefit Guaranty Corp. On that site there a many FAQs. It might have taken you a few seconds to find the information but then you would have to read this:

"PBGC receives no funds from general tax revenues. Operations are financed by insurance premiums set by Congress and paid by sponsors of defined benefit plans, investment income, assets from pension plans trusteed by PBGC, and recoveries from the companies formerly responsible for the plans."

About assumptions: I appreciate that you felt it possible that you had made some assumptions that might have been wrong. That's a good start, but by itself it doesn't get you far. Arguing based on those assumptions seems like the second step. The first step is to investigate those assumptions. It is clear that you are an Internet user. I would have thought that instead of being angry with me you might have looked into your assumptions.

I've accepted the statement of the PBGC that they don't get government tax revenues. I accepted that after I looked and did not find anything about them ever being bailed out from general revenue funds. I might have missed it in my searching. Correct me if you find out that is wrong.

Don

With a current $34 Billion dollar asset deficit, it is possible that in the near future one of these possibilities will occur:

1. Revenue will increase to the agency and the problem may dissolve.

2. Benefits to retirees will be reduced.

3. Tax payer money will have to be used to pay benefits. It is a government agency and Congress would probably have to change the laws allowing them to receive a bail out.

This is what ljfinger and I concluded. If you have something to add or change to this it would be appreciated.

Blast off at the executives that failed to keep a well funded pension system for their employees. Where's your indignation about them? How many got golden parachutes while their employees got zilch?

Don

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