On December 18, 2014, Congress passed the Continuing Resolution Bill to fund the government. Most people were unaware of that. What they were also likely unaware of was a provision, well hidden in it that allows the government to cut pensions. This is not just at some vague time in the future for new retirees, but for people who are already retired and living on those pensions.
We've been warned about this possibility for some time and that day is now here. The Pension Benefit Guaranty Corporation has now been given the right to cut pensions if it wants to or has to at some point. Notice, you will have no say in the matter unless you can afford a lawyer and the years of litigation it will entail to fight this with no guarantee that you will win.
Supposedly, the ones who will be effected will be those with multiple-employer pension plans. In other words, someone who moved around within an industry, such as over the road truckers working for more than one employer. But that is a slippery slope as once the camel's nose is in the tent, it is nearly impossible to keep the rest of him out. You know this is just a toe in the door to see how much the elite can get by with. This government has been salivating for some time over the 19 trillion in especially private pension funds with no way to tap into them because they were guaranteed earnings.
Isn't this the same elite who squeal like pigs whenever anyone suggests they pay more of their fair share in taxes? Even though they are already obscenely rich. They want to take even more from the middle and working class. However, I look upon this as another way to make people less independent and more dependent on government. Your home may be paid off, but if you can't afford the upkeep and property taxes because your social security or pension was cut how are you going to be able to stay in your own home? You will be shuffled off to a low rent housing unit, which is part of the socialist plans. Wake up Democrats!.
Just what is the Pension Benefit Guaranty Corporation? In 1974 Congress became concerned that pensions were not guaranteed and might just go away if a company went bankrupt, moved overseas, was bought out by another entity or merged with another company. That is when the Pension Benefit Guaranty Corporation was set up. So if you worked for a company say for five or ten years whatever your union negotiated, your pension was guaranteed even if that company dissolved.
However, it was set up to be funded by a more robust economy than what we have today. With economic growth on life support, the government is concerned that there won't be enough money to keep the promise of payment. Pension funds are now way underfunded. So corporations put pressure on their bought and paid for Congress to step in and allow the PBGC to 'ask' pensioners of multiple pensions if they would agree to a cut. Don't think this is in any way engaging the pensioner in a real discussion of choices.
It strikes me that it will be more like the contract negotiations in the 70's and 80's where the bargaining unit was given the choice of accepting pay and benefit cuts or the company would close up shop and move overseas. Of course the fear tactic won out in most cases, the employees voted to accept the cuts and in many cases, the company closed up and moved overseas anyway. They just had more capital to fund their move and start up costs overseas.
What disturbs me most is the underhanded way this was hidden in the Budget Continuity bill which no one bothers to read and weren't about to vote against as probable political suicide. I would love to see someone in Congress with the guts to initiate a 28th amendment that nothing but single item stand alone bills would be submitted and voted on. If an issue is important enough to be legislated, it will go the rounds without all the pork attached to it. I've thought for years it was a mistake to ever allow Congress to do business that way. But since it benefited both sides of the aisle, they weren't about to mess with it.
Of course this change concerning pensions was all done in secret. This pathetic excuse for a government doesn't want it's seniors marching on Washington. I find it reprehensible that TPTB would go after people who are already living on social security and their pensions and who are at an age or condition where they can't go back to work if they could even find employment.
This legislation is the very first time since 1974, that holders of private pensions have been given the right to cut those pensions. The government agency that was specifically set up to guarantee that people would receive their pensions has now been given a free hand to reduce or eliminate them if they see it as necessary. The lawyers who make up most of Congress can reshuffle anything can't they? Although making changes in future pension promises might make economic sense, opening the door to cutting anyone's pension who is already receiving it is deplorable and just about what I would expect from the Cabal and their congressional lapdogs.
What further adds salt to the wound is the fact that most of these corporations are still earning record profits and paying their top managers obscene salaries, benefits and stock options that have no relevance to work performed if 2008 was any example.
Many pensions are underfunded having promised more benefits running into the future than their current investments can provide. How can that be when when the stock market is at all time highs? It appears appropriate contributions were not made in time to create the growth needed to pay the pensions. What? Okay, where did that money go? It was taken out of people's earnings. If it was available, it didn't just evaporate. If it wasn't there why were these promises made? That is fraud.
How shaky your pension is depends on who employs you. Private, multiple employers/unions or public/government...for now. Just because multiple employers took the first hit does not mean that the public and private pensions won't be put on the chopping block down the road. Illinois public workers have already learned about who gets shaved first when money is tight.
Public/government pensions. Hmm, would that include law enforcement? The same people the elite plan on using to corral and control the rest of us? I know what I'd be telling them if that is the case. You people in law enforcement need to decide where your loyalty lies. Several years ago, while walking a picket line outside our factory a young policeman – called by the company no doubt– stopped to harass us. I said, “Number one, this is a sanctioned strike, not a wildcat. Number two, we are walking on a public sidewalk, not bothering anyone and Number three, Don't you belong to a union? Why are you allowing this company to use you as a club over the heads of your brothers and sisters?” He got back in the car and we didn't see him after that for the whole five weeks we were out. You just have to get people to use their heads and think instead of blindly obeying TPTB.
Oh, and those public pensions, that's states and cities, they now have total deficits of over 1 trillion dollars. That would include law enforcement pensions. You think you are part of the 'in power' clique?I wouldn't want to bet my pension on that. Just keep supporting those elite. They take such good care of you boys.
So why this move now? What is so different between 1974 and now? It appears that many of these plans have one worker still paying in for every two retirees. Kind of like Social Security. Well, I wonder why that is? Lay a few more people off, close a few more of your subsidiaries. Move a few more of your factories overseas. Keep paying those huge salaries/bonuses to the already overpaid elite at the top. It's all part of the plan, isn't it? I think before I agreed to any cut, I'd be asking about the CAFR accounts. There is plenty of money available. It's just hidden in investments at all levels of government. Do a search on those. It's a real eye opener.
By the way, the PBGC is who will become the trustee of your pension plan if your former employer files for bankruptcy or becomes insolvent in some way. Good luck getting your full pension if that happens. Let's see, the last annual financial report from the PBGC shows a long term deficit of over $60 million. With a 90% chance of running completely out of money in ten years, I wouldn't be feeling real secure about receiving my full pension. What happened to that 19 trillion supposedly in reserve? How can you have a deficit and a healthy reserve at the same time? Two sets of books?
Whatever the answer to those questions, it was no problem to solve their dilemma. Just go crying to Congress and they'll make sure you don't have to keep your promises or honor your obligations. And for those who are congratulating themselves on their wise investments and planning for retirement? With the changes in the banking industry, all I have to say is 1929. These carrion fowl are intent on picking our bones clean and they will use their influence in Washington to accomplish that. Time to resurrect the Gray Panthers?
I hope people will make sure that the maximum number of people know about this latest 'stick it to the people' move. Welcome to the wonderful Socialists government whose mantra is 'wealth redistribution so all can prosper.' Right! And I have some swamp land I'd like to sell you. Oh, and you unions that thought your bought and paid for Congress critters would look out for your interests in return for all that money you funded to them? Welcome to the D.C. Two-Step.
