Papantonio: Corporations Rob Senior Citizens of Retirement Funds

[GoLeft TV]

Wall Street has declared war on pension plans and it’s getting help from the Democrats in Congress. When Congress passed the budget bill last month, much of the media focused on one part of that bill that allowed big banks to get tax-payer bailouts when they make risky trades.

But there was another part of the bill that was just as dangerous for the American economy and American workers. This would be the Kline-Miller amendment, where both Democrats and Republicans agreed to put pension programs for millions of Americans on the chopping block.

Mike Papantonio discusses this with attorney Peter Mougey.

[Evergreen5]

1. Clarification/discussion needed

Kline/Miller legislation does NOT affect most public service employee unions. Only unions that are in multi-employer pension (MEP) plans insured by the Pension Benefit Guaranty Corp. are affected and there are many large unions participating. Denouncing Wall Street is appropriate but Kline/Miller is probably just one tactic to destroy ALL pension plans. Consider these highlights.
The PBGC receives premiums from member employers but the premiums are set by Congress. Congress has knowingly kept premiums below a level that can support PBGC obligations to retirees. Hmmmm.
Premiums are going up in 2015 and may cause employers to drop membership despite having to 'buy out' their membership which will cause further PBGC deficits. This leaves subsequent employers who leave to pay a larger buyout as the deficit grows further. This could motivate employers already annoyed by higher premiums to jump ship fast. Hmmmm.
Pension plan members affected by Kline/Miller can vote to approve a merger with other pension plans in their group (which may or not be healthier than their own). The PBGC, Dept. Of Labor and the Treasury Dept. can override a 'NO' vote and force mergers where non-merger involves plans with a $1Billion or greater deficit. Hmmmm, again.
And retirees under age 70 can have their annual payouts cut to as low as $13,000. Some of these retirees may not be eligible for Social Security.
Remember, single employer pension plans covered by the PBGC are not covered by Kline/Miller. Why not? Is it easier to sell a plan to destroy pensions for union members to Americans, the majority of whom no longer have pensions? Probably. Is Social Security next? Sounds like Congress' approach to privatizing the USPS. Create a false narrative about something, choke off its funding to spike deficits, declare a crisis, turn the 'problem' over to the private sector (Wall Street?) and have the taxpayers bail out the deficits.