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NYT: Thought Secure, Pooled Pensions Teeter and Fall (more than one million people will lose theirs)
http://dealbook.nytimes.com/2014/04/12/thought-secure-pooled-pensions-teeter-and-fall/?_php=true&_type=blogs&_php=true&_type=blogs&partner=EXCITE&ei=5043&_r=1&
By MARY WILLIAMS WALSH APRIL 12, 2014, 11:20 AM
Chang W. Lee/The New York Times
Carol Cascio received a letter saying that her husbands pension plan had been terminated by mass withdrawal.
The pensions of millions of Americans are being threatened because of trouble in a part of the retirement world long considered so safe that no one gave it a second thought.
The pensions belong to people in multiemployer plans big pooled investment funds with many sponsoring companies and a union. Multiemployer pensions are not only backed by federal insurance, but they also were thought to be even more secure than single-company pensions because when one company in a multiemployer pool failed, the others were required to pick up its orphaned retirees.
Today, however, the aging of the work force, the decline of unions, deregulation and two big stock crashes have taken a grievous toll on multiemployer pensions, which cover 10 million Americans. Dozens of multiemployer plans have already failed, and some giant ones are teetering including, notably, the Teamsters Central States pension plan, with more than 400,000 members.
In February, the Congressional Budget Office projected that the federal multiemployer insurer would run out of money in seven years, which would leave retirees in failed plans with nothing.
FULL story at link.
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NYT: Thought Secure, Pooled Pensions Teeter and Fall (more than one million people will lose theirs) (Original Post)
Omaha Steve
Apr 2014
OP
KG
(28,749 posts)1. they're not being lost, they're being stolen.
Jerry442
(1,265 posts)2. In an era where financial institutions commit felonies with impunity,...
...often with the complicity of government, no assets are safe. Not your pension, not your savings, not your house, not your stock portfolio, not anything. This is the world we live in.