- Credits
- 538
Companies that were allowed to go bankrupt and not pay pension liability was what is/was killing CSPF. Bankruptcy judges put paying pension liability at the bottom of the list when it came to paying off outstanding debt when liquidation of the companies happened.I'm confused by this bill. Pension funds, which are critically short of cash to begin with, are supposed to take loans from a new agency which sells bonds, on the open market, to raise cash for the loans. Then the funds are supposed to set aside money, which they didn't have before, in safe paper like annuities, in order to maintain the current pension payments. If the funds couldn't afford to set money aside before, now they will be able to pay back what they didn't have before plus interest and the Fund's hole just keeps getting deeper and deeper requiring more loans and more interest.
What am I missing here?
You not taking into account more are receiving than putting into the pension at this point......Expect that ratio to level off at some point in the futureI'm confused by this bill. Pension funds, which are critically short of cash to begin with, are supposed to take loans from a new agency which sells bonds, on the open market, to raise cash for the loans. Then the funds are supposed to set aside money, which they didn't have before, in safe paper like annuities, in order to maintain the current pension payments. If the funds couldn't afford to set money aside before, now they will be able to pay back what they didn't have before plus interest and the Fund's hole just keeps getting deeper and deeper requiring more loans and more interest.
What am I missing here?
Add in that, until those bonds are funded, the money is a bailout from the taxpayers. And $25 billion from PGBC which the Fund already says it'll never pay back.I'm confused by this bill. Pension funds, which are critically short of cash to begin with, are supposed to take loans from a new agency which sells bonds, on the open market, to raise cash for the loans. Then the funds are supposed to set aside money, which they didn't have before, in safe paper like annuities, in order to maintain the current pension payments. If the funds couldn't afford to set money aside before, now they will be able to pay back what they didn't have before plus interest and the Fund's hole just keeps getting deeper and deeper requiring more loans and more interest.
What am I missing here?
Add in that, until those bonds are funded, the money is a bailout from the taxpayers. And $25 billion from PGBC which the Fund already says it'll never pay back.
I doubt this leaves the Senate Finance Committee. Besides only having Democrat Sponsors, besides the Government being broke- the Sponsor, Sen Brown, got into a shouting match with Committee Chairman Hatch an hour later over taxes. Don't expect anything Brown wants to move anytime soon...