Largest bailout for multi employer plan. Anyone who knows a little bit of history of teamsters funds knows this is slippery slope.Why are taxpayers responsible for bailing out multi employer plans that were so reckless with their use of pension funds.How about funding for private non -union plans.I get it union workers much more important to Biden, but there are around 200 underfunded multi employer plans so billions to come from taxpayers
Implications Of Central States Pension Plan $36 Billion Rescue Funding
- Thread starter ed odowd
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There has been the Pension Benefit Guarantee Corporation has existed since the 70's. This just funded it to guarantee pensions. I don't have an issue with this. People who worked hard their whole lives for the promise of a pension should have that benefit.
Yeah I am familiar with PBGC but they never payed out anywhere near this to one plan.The issue is multi employer plans and Government plans are not subject to IRS section 436 funding rules.So these plans have low percentage of liabilities funded ,for example,Illinois has about 16% of their liability funded.Single employer must freeze benefit accruals if they fall under 60%.These tougher rules should apply to all plans to avoid need for large bailouts.
Agree with both of you. It’s a slow death for employer pension plans in favor of defined contribution. Way too slow in my opinion, especially for the government. Employees should have more personal responsibility for retirement savings. It used to be public salaries were far lower and thus pensions were necessary.
I support our police wholeheartedly. While I also think that it’s asinine that they’re retiring at 45-50 years old with a full pension AND the ability to contribute to a 457 plan (think 401k) and have that in the side. I had an advisor in my firm that exclusively worked with NYPD. These guys don’t even know what to do with their 457 and have a full salary for 40-50 years if they live to 90 for working 20 years. The concept is DEAD.
It made more sense when people retired at 50 and lived to 65. It’s gotta go. And don’t get me started on pensions for politicians. They’re wealthy, and then get paid for life after serving a few years. But who’s gonna change the rules, politicians?
I support our police wholeheartedly. While I also think that it’s asinine that they’re retiring at 45-50 years old with a full pension AND the ability to contribute to a 457 plan (think 401k) and have that in the side. I had an advisor in my firm that exclusively worked with NYPD. These guys don’t even know what to do with their 457 and have a full salary for 40-50 years if they live to 90 for working 20 years. The concept is DEAD.
It made more sense when people retired at 50 and lived to 65. It’s gotta go. And don’t get me started on pensions for politicians. They’re wealthy, and then get paid for life after serving a few years. But who’s gonna change the rules, politicians?
Think about this. I know I guy who was shot in the line of duty… terrible. Retired at 36 or 39. Wakes up every morning and makes $175k a year for breathing. And the $500k or so he accumulated in his 457 was just dumped into a business. Full salary as a restaurant owner, with $175k lifetime salary adjusted for inflation coming to him. No cost for healthcare.
Now he was shot. But he would have been in the same situation 8-9 years later.
It’s a brutal job, for sure. But the benefits are unaffordable for this country as life expectancy grows to the mid-upper 80s and we’re paying for 30-40 years of retirement. Retirement used to be 15-20 years.
Now he was shot. But he would have been in the same situation 8-9 years later.
It’s a brutal job, for sure. But the benefits are unaffordable for this country as life expectancy grows to the mid-upper 80s and we’re paying for 30-40 years of retirement. Retirement used to be 15-20 years.
He was a cop in NJ and got a disability pension of 175k per year? I find that hard to believe. The highest Disability pension a police officer can receive is 66 1/3 % of final compensation. That would mean the cop was making over $250,000 a year.
NYC detective and that is including inflation over the last 20 years after being shot in the head in the line of duty.
