Now we're bailing out DEFENSE CONTRACTORS Pensions ????????

[housewolf]

http://motherjones.com/mojo/2011/11/defense-pentagon-contractor-pension?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+Motherjones%2Fmojoblog+%28MotherJones.com+%7C+MoJoBlog%29

Taxpayers Get Stuck Saving Defense Contractors' Pensions

—By Adam Weinstein
| Wed Nov. 16, 2011 10:11 AM PST


The federal government forks over billions of dollars a year to keep high-earning defense contractors' pensions afloat, according to a new story by the New York Times' Gretchen Morgenson:

The so-called supercommittee in Congress has until Nov. 23 to find more than a trillion dollars of new savings in the federal budget.

Here’s one idea: Stop reimbursing the costs of pensions and other retirement benefits at huge, and hugely profitable, defense contractors. Over 10 years, such a move could save an estimated $30 billion — the amount by which these pensions are collectively underfunded...

Many of these funds have lost money in recent years in declining financial markets or on bad investments, so the bill for taxpayers has been growing.

Considering how much ordinary Americans have lost in their own retirement accounts—losses that the government does not cover—reimbursing contractors looks like classic corporate welfare.

And how. Government contracts with megafirms like Boeing, General Dynamics, Lockheed Martin, and Raytheon require Uncle Sam to reimburse the companies when their workers' pension funds take a hit in the market. Over the past five years, Lockheed has secured $3.1 billion in taxpayer dollars for pension reimbursements; that's a significant chunk of the $21.8 billion in operating profits they reported over that period.

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http://motherjones.com/mojo/2011/11/defense-pentagon-contractor-pension?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+Motherjones%2Fmojoblog+%28MotherJones.com+%7C+MoJoBlog%29

[Angry Dragon]

1. that is total bullshit

[Ichingcarpenter]

2. We need to make sure they get million dollar bonuses too.

just like the fannie may executives.

[dana_b]

3. pensions for defense contractors but none

for you or me. wow... I should have become a defense contractor instead of a nurse.

[NavyDem]

4. Intesting...

I know at least 2 of those companies listed offer a 401K, and made no mention of pension in their benefits packages. Even the company I work for as a a defense contractor only has 401K as a retirement option.

[villager]

5. They bail out those who are important to them. That's not you. Or me.

n/t

[Amonester]

10. Yep. We offer no kickback$.

Only "voluntary" (naive) donations when it's time to go out campaigning (lying).

[PoliticAverse]

6. Defense contractors often get bailed out over 'cost overruns'. n/t

[Citizen Worker]

17. Having worked for three different defense contractors I can unequivocally that said contractors

engage in creating cost overruns to squeeze more taxpayer dollars from the government. That's how government contracting works.

[tblue]

7. But we can't protect gov't workers' pensions?

:puke:

[City Lights]

8. Uhmurika is so fucked up.

:-(

[banned from Kos]

9. probably the PBGC behind it - its kind of like an FDIC for pensions

(but I didn't read it - about to tornado in Atlanta where I live. very freaky hot today)

[KansDem]

C'mon, lay off! It's been a bad year for war!

Just wait until we invade Iran!

Yeah! Yeah! That's the ticket!!! :woohoo:

[Divine Discontent]

11. oh my gosh.... that's such utter bullshit! I had no idea this has been going. BILLIONS

I knew they did cost overruns and charged crazy prices for their services/products, but I didn't know they got to tap into taxpayer funds for losses on their retirements!

This is absurd.



Get it now, or one of a million other designs! http://www.zazzle.com/republicans_2012_keeping_millions_out_of_work_bumper_sticker-128659602907896843?rf=238107662556833486

[snappyturtle]

12. Outrageous! One of these days, and I think the day has arrived with OWS movement,

people will awaken to the massive over funding to banking, defense, & farming to name a few while we struggle to make ends meet with no guarantees and threats to the social nets we have remaining.

[redqueen]

14. I sure hope so...

but if that hasn't happened by now, what will it take?

[snappyturtle]

18. I'd have no idea what it will take however, I think it is happening. Another 'subsidy'

that I take strong objection to is the taxpayer paying 75% of the healthcare coverage for gov't workers. Evverybody should have it or not.

[pacalo]

13. This is the LOWEST of the LOW. What other high-earning bailouts are going on that will cause

even more hardship on the "lower earners"?

What about the thousands that continue to drain out of our 401k's???

:grr:

[zbdent]

15. Women on welfare have more restrictions on how they use federal money

than CEOs of companies that get government contracts, these days ... or at least it seems that way ...

[Bozita]

16. This is really gonna piss off the postal workers!

[progressoid]

19. I'm beyond outrage.

I've begun to expect this to the point that it no longer shocks me.

The hits keep coming and coming - I'm numb.

[toddwv]

20. Yeah PRIVATIZATION!!!

Maybe we should force the contractors to fully fund their workers pensions for 75 years before they ink the contract, you know go "Postal" on them like Congress did with the Post Office.

Oh wait...I keep forgetting that the Repubs are only trying to break the back of GOVERNMENT agencies...my bad.

[Downwinder]

21. Cut pensions before Social Security. Social Security is a safety net.