Ike, Some questions I can't answer. Pensions have been a scam in America forever. Many, in fact, most, cos. and unions, run their pension money honestly. But the crooked/stupid minority is a major problem and they were the reason the govt. started Social Security. Here is part of the problem:
1. Pensions copied insurance annuities, not mutual funds. That means they defined how much they would pay out, with escalators since the 1970s inflation. If they earn enough so they beat that on actuarial tables, they can take the money back as profits. In the 1970s and 1980s, most pension plans were underfunded. Today, most are overfunded.
2. Employees generally do not contribute to the managed plans. This is a co. benefit, not really a part of salary. It is also a liability of the co. If the co. goes belly up, you lose your pension. The PBGC has set up a program that gets rid of that problem, but I haven't seen a major test of that govt. insurance yet. We will.
How do they get away with screwing workers? They contribute more to political campains than non-organized labor does. They generally do not get away with it if you have an AFL-CIO workforce. Of course, if you have the Teamsters, the co. does not get away with screwing the workers, the union does. <g> Organized labor is very weak right now. Too many years of Republican Presidents and Congressional majorities. The Republicans are having the last laugh. They rip off the workers and the dummies still vote for them because they push the knee jerk buttons. |
