In a real case of too little to late, the Senate (97-2) passed a pension funding bill that requires companies to (gasp!) fund their pensions!
Have we just become some kind of Communist Country??? Much as I am amazed that this is happening under a Republican administration this is actually a good thing for people but a very bad thing for a lot of the blue chips.
GM’s little crisis brought this thing to a head but the extent of underfunded pensions in this country is truly staggering. Think airlines, auto, manufacturing – anyone with unions will find themselves in dire straights because the reaction of most underfunded companies will probably be to tell people there will be no more pensions.
So how is this good for people? Well at least companies will have to be honest with you instead of making a bunch of promises that can never be kept.
“The Pension Benefit Guaranty Corp. estimates that the nation’s pension plans are underfunded by more than $450 billion.” (It helps when you read this to imagine Dr. Evil saying $450 Billion with his finger in his mouth)
Of course airlines, who are the biggest culprits (NW and DAL alone are $15Bn in debt), are exempt for 20 years – I suppose they are hoping everyone who is eligible dies by then…
I am not smart enough to understand who really loses on this one but I do know who wins – The Brokers!
Huh, you say.
Yeah, funny thing that – remember when they wanted to take our social security money and play the market with it and everyone said “that would be crazy.” and finally the thing died?
Well, right in this bill “rules would be relaxed to allow pension plans to engage in block trades, trades on electronic communication networks and transactions on foreign exchanges.”
Not only are companies now allowed to play the markets with thier pension funds, they are practically encouraged to – Behind on your pension obligation? Put it all on red!
