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hatter5183

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Pensions are insured by the government to a certain amount
Lately that has been equating to 20 - 33% of what they are worth.
Look at Delphi, when it went ---- up, the pensions were cut benefits to 30% and then the bankruptcy judge granted huge bonuses to management.

#55 | POSTED BY 726 AT 2017-10-23 12:02 PM | REPLY

By design due to republican deregulation.

Pensions are safer and cheaper for both the business and the employee if initial funding is made and the money is not raided by the company.

The way they were supposed to work is worker gets promised X now and Y later with an 8 or 10 year vesting. Historically the S%P 500 averages about 8% gain. To be safe deposits used to be required so that as long as they averaged 4% they would be solvent. So instead of paying the employee X+Y up front they pay X and deposit .68Y in the fund. If it gets 4% after 10 years 0.68Y has turned into Y. If it gets 8% It would be 1.46Y. If that were to happen the "excess" funds are still not excess. They are there to average out the times that the fund only grows at 1% or *gasp* loses money. In the original setup none of the pension money was owned by the company. The entire amount was owned by employees and pensioners. The only money that was returned to the company was deposits made on behalf of employees who teminated before they vested.

When run as designed pensions worked very well. A great example is the State of Wisconsin. It is the 24th largest pension fund in the world. Because of language in the state constitution the changes to pension law that doomed most pensions did not affect it. The Wisconsin plan has a $2.5 Billion surplus.

projects.jsonline.com

Republican Governor Tommy Thompson tried to raid the fund in 1999 but got spanked by the state supreme court. Republican Governor Scott Walker has openly stated he wants to reduce pension benefits because like all republicans he sees pension funds as a piggy bank he can rob

active military favors democrats consistently

www.opensecrets.org

https://www.opensecrets.org/news/2012/10/armed-forces-show-overwhelming-supp/

https://www.opensecrets.org/news/2008/08/troops-deployed-abroad-give-61/

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