Full Version: Are America's pensions false promises?
QUOTE
Change the incentive system so that it no longer encourages companies to underfund plans and defer liabilities "in order to artificially boost profits, stock prices and executive compensation," says pension and labor law attorney Robert A. Sugarman, of Sugarman & Susskind, Coral Gables, Fla. The incentives for business now perversely jeopardize workers' and retirees' financial security.
Pension fund threat level can be eased
The Pension Benefit Guaranty Corp is the federal agency that insures pension funds and it is facing a spiralling deficit and the threat of an addition of the United Airlines pension fund becoming an additional obligation.
The questions for debate are:
Are American pensioners facing a real risk of not receiving retirement benefits they have been promised by their employers?
Is this an intentional practice engaged in by today's corporations?
Does Congress have a responsibility to address this issue today?
QUOTE
Are American pensioners facing a real risk of not receiving retirement benefits they have been promised by their employers?
The retirement of the baby-boomer generation has been advancing on us for decades. There was never any way to hide it, or what it meant for the revenue of the nation and pension funds that depend upon tomorrow's economy.
It is made a shade better, by good reproduction in some of the newer American groups, and by slight increases in older motherhood.
It's a bit worse, because science & medicine (and improved health-habits) are helping us live longer ... and pose a certain possibility of serious life-extension, which worries planners.
The attitude has gradually emerged, that there will be, quite simply, major 'adjustments' in the pension/retirement picture. Almost a self-fulfilling expectation, by now.
QUOTE
Is this an intentional practice engaged in by today's corporations?
By corporations? The federal government itself appears to be leading the way toward retirement-erosion. Corporations are just staying competitive, taking their cue from HQ.
Intentional? Crafted? Deliberate? Sure. We will soon see something like the recent reversal on "Pubic Assistance". Retirement will be made to sound slightly unsavory.
QUOTE
Does Congress have a responsibility to address this issue today?
Well, yes, theoretically speaking. Observationally, their priority commitments do not lie with the public, but with their own institutions and those of their associates.
The work-now, play-latter concept was never particularly convincing. While the failure of pensions will be very cruel to some people, it will also leave many others enjoying life more than they expected.
Puncturing the retirement-balloon will also disabuse many younger folk, some of whom will conclude that 'careers' aren't all they're cracked up to be ... and we may as well play all we can, while we can.
Are American pensioners facing a real risk of not receiving retirement benefits they have been promised by their employers?
Is this an intentional practice engaged in by today's corporations?
Does Congress have a responsibility to address this issue today?
The risk is real.
Yes
Yes, but so does the individual.
A little paranoia goes a long way. I never trusted my employers as I had been reading all along about companies getting taken over and the retirement funds getting raided. And I stayed in the Navy Reserve after my 12 years active duty, so when I turn 60, that will pay off with about $1100 a month, cheap medical coverage, and free drugs (the legal kind). Also put money in IRA's for me and the wife, and paid off the house early. Helped the 2 kids thru college so they could get a good start, without student loans. Only recently did we splurge a little and buy a few new cars. She started working when the youngest kid started school. Between the 2 of us, making a lot and spending carefully, we are better off than most.
I know a lot of people that I preached to over the years about the coming mess, and now that it is here, some of them are realizing the error of their ways. Others are still in denial.
Is this an intentional practice engaged in by today's corporations?
Does Congress have a responsibility to address this issue today?
The risk is real.
Yes
Yes, but so does the individual.
A little paranoia goes a long way. I never trusted my employers as I had been reading all along about companies getting taken over and the retirement funds getting raided. And I stayed in the Navy Reserve after my 12 years active duty, so when I turn 60, that will pay off with about $1100 a month, cheap medical coverage, and free drugs (the legal kind). Also put money in IRA's for me and the wife, and paid off the house early. Helped the 2 kids thru college so they could get a good start, without student loans. Only recently did we splurge a little and buy a few new cars. She started working when the youngest kid started school. Between the 2 of us, making a lot and spending carefully, we are better off than most.
I know a lot of people that I preached to over the years about the coming mess, and now that it is here, some of them are realizing the error of their ways. Others are still in denial.
This is a simplified version of our main content. To view the full version with more information, formatting and images, please click here.