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Yellow | A Big Pension Worry for Some Union Members

Need to encourage that New Jersey congressman that issued a bill to use non taxpayer money out of a little known account.An account that has proceeds from corporations that have paid into this account for years.He proposes that each sub level pension fund be paid a certain amount to get the pension funds a little bit above water
 
bigtruk_us said:
Need to encourage that New Jersey congressman that issued a bill to use non taxpayer money out of a little known account.An account that has proceeds from corporations that have paid into this account for years.He proposes that each sub level pension fund be paid a certain amount to get the pension funds a little bit above water
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Interesting, can you tell us more?
 
I read an article about this a year or so ago.I believe it was a New Jersey congressman.I guess it could be googled.Congressman was talking about a certain amount in Billions to buoy some of these troubled pension funds.
 
A little known account or accounts that these corporations have paid into over the years.Whether they are still in business or not.
 
I don't believe everything that is reported.When it comes to pension funds.You know some of these administrators and politicians and union leaders want to use these funds as ATM machines
 
I read a bill authored by Casey-Pomeroy.But that bill creates a fifth fund for the Pension Guarantee bailout fund.In that article it stated that the government is or was responsible for some of the failures of these private sector pension funds.Including multi employer pension fund.
 
bigtruk_us said:
I read an article about this a year or so ago.I believe it was a New Jersey congressman.I guess it could be googled.Congressman was talking about a certain amount in Billions to buoy some of these troubled pension funds.
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If it WAS in New Jersey,I would assume that Gov Christie has gotten his hands on it by now..
 
Bart said:
The CSPF has been run by the Government since 1984 and I would say they didn't do a very good job!!!
Are they responsible for its failure I don't know but I would like to know!!!
http://www.gao.gov/assets/150/143210.pdf
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I agree the government mandated Wall St.'s control of investing the CSPF's assets have been a huge loss for the funds. But the Wall St investment firms have reaped huge profits by making high risk high commissioned investments. Even Ed Stier admitted that the CSPFs did better when Jimmy Hoffa was making loans to the Las Vegas mob.

.Since 1982, under a consent decree with the federal government, the fund has been run by prominent Wall Street firms and monitored by a federal court and the Labor Department. There have been no more shadowy investments, no more loans to crime bosses. Yet in these expert hands, the aging fund has fallen into greater financial peril than when James R. Hoffa, who built the Teamsters into a national power, used it as a slush fund.

The unfolding situation holds a hard lesson for others with responsibility for retirement money. What may appear as a sensible, conventional approach to investing - seeking a diversified mix of growth and income investments for the long term - can wreak havoc when applied to a pension fund, especially one in a dying industry with older members who are about to make demands of it.

But the kinds of investments that make sense for such a fund - like long-term bonds that will mature as members enter retirement - are not attractive to most money managers, because they generate few fees. Consequently, very few pension funds use such strategies today.
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The New York Times > Business > Teamsters Find Pensions at Risk

The Federal Government is responsible for the financial situation that some MEPFs are now in. For years Congress has been doing corporate America's bidding by trying to replace pension funds with IRAs and 401s The PBGC is not funded with taxpayer dollars but Congress still controls the premium rates paid by the pension funds. One reason the PBGC is underfunded is because Congress won't allow it to raise the participating MEPF's contribution rates......IRS laws prohibited pension funds from saving excess funds for when the stock market has down years..........Another reason is the Federal bankruptcy laws that put the company's unfunded pension obligations at the back of the creditor line. And Bush's PPA forced additional hardships on some of the weaker funds

The congress created this pension mess and they will be the ones to correct their mistakes. But hopefully not by repealing the ERISA anti cutback rule.
 
Fr8holler said:
Combine all the various teamster plans into one. .. problem solved.
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I'll up you one put all Multi-Employer Pension funds in one pile so you can start phasing them out. The saving in administrative costs alone could pay a lot of pensions. Nobody cares about these plans anymore and they will never see any growth in participants. The sad part is the plans are going to fail and we are forced to keep throwing money into it. I'm sure there are some ways to soften the pain coming our way but nobody cares as long as they get theirs!!
 
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