Monday, May 24, 2010

FOX Businness: The Next Bailout: $165B for Unions

More union payback. Why isn't there a bailout for all the non-union pension funds and all the 401k plans. Everyone who had any kind of savings for retirement has been hit hard by the economic downturn. Union plans, by in large, are more generous than private non-union plans, usually offering earlier retirement and greater percentages of their working income. I care that they are financially not where they thought they would be, but who is. The taxpayers cannot afford to bail out everyone, especially those in the same sinking boat.

A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.

The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.

As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.

Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.

It’s hard to say at the moment what the chances are that the bill will pass. A hearing is scheduled Thursday, which will give the public a sense of where political leaders sit on the topic, said Willis.

Just last week President Obama said there would be no more bailouts.

View You Make It. They Take It. Video here

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