Umm, John, these same companies took billions of dollars out of their plans when the stock market was booming and interest rates were high, making it appear that the plans were waaaayyyy overfunded. Only a few people whispered that rates would not always be so high (note: higher rates make the present value of money higher for actuarial/pension purposes) nor would the stock market, but were completely ignored. Why do you think that was so? Who were the responsible ones, and who the irresponsible ones?
"This is the ultimate jobs bill," said Sen. Judd Gregg, a New Hampshire Republican. Without the measure, companies would be forced to take money they would have otherwise put into job creation and put it in their pension plans instead, he said.
Yes, well, it is also the ultimate pension destruction bill. Or rather, it just validates what companies did years ago, and makes it likelier than not that when people who work for these companies who are today in their 40s and 50s reach retirement age, whatever pensions they have will not be funded or will be dramatically changed, because the money just won't be there.
We are really setting ourselves for some miserable decades a few decades from now. I realize of course that almost no one really cares about this, but it will be our own fault. Our irresponsibe actions of today are making it almost inevitable. |
