Saturday, April 10, 2010

Decrying the Union Pension Bailout Bill

Just another payoff to the Democrat union base, forcing the taxpayer to pay for the excessive union pensions.

Following on the healthcare model, it's all part of a political calculus in which Washington politicians try to buy votes today for the next election with money that Uncle Sam won't have to spend until afterwards. It is Pennsylvania's other Senate seat that is to be filled this November, but Mr. Casey, a first-term senator elected in 2006, appears to be looking ahead to 2012.

Under these bills, the Pension Benefit Guaranty Corporation would, at the request of the plans, have the authority to take over the pension obligations of employers who have withdrawn from the plans, and pay the benefits out of taxpayer dollars. Once the PBGC shoulders that obligation, it would keep making payments until the last retiree or designated survivor dies.

Since many multiemployer plans are in financial difficulty, this legislation, if enacted, could dramatically increase the federal deficit, putting even more pressure on the American taxpayer and the economy. Depending on events, it might add billions to government spending-current underfunding levels are estimated at $165 billion-bumping up future deficits.

Unions prefer multiemployer defined-benefit plans to allow workers to keep pensions if they change jobs to another participating company in the same industry. Such plans have the effect of keeping workers in unionized jobs in the same industry for most of their working lives, contributing both to defined benefit funds and to unions' security.

Read article here.

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