Republican Governors are making pensions meaningless. Don't leave pension funds in the hands of the employer anymore. As a matter of fact, unions need to seek resolutions with current employers that hold pensions for their members to transfer the funds to more secure options. Do it now, don't wait for every major city or private enterprises to go bankrupt.
Don't force the bankruptcy, but, begin a structured transfer of monies from company, state and city held pensions over a period of years. The federal government did it to the US Post Office, it is time everyone does the same thing. The banks aren't trust worthy. They have proven themselves to be untrustworthy. The only entity that survived 2008 were the federally insured credit unions. Why go anywhere else? They have investment capacity.
By all rights Detroit should have received a federal bailout no differently than New York City, but, getting it through Congress would have been impossible. Pushing Detroit into bankruptcy it assault the meaning of pensions. Employees need to negotiate contributions into 501Ks, but, with the uncertainty of Wall Street that isn't much better a solution. The last resort is setting up pension funds with federally insured Credit Unions and not the employer.
For the states that will seek to shield companies from honoring their contracts today and in the future it gets real simple. Entanglements of any kind with the employers, public or private, is corruption / conflict of interest / however anyone wants to word it. That is how union leaders get in trouble. Currently, the gossip is that unions are consenting to arrangements that lead to issues as Detroit has. Enough of the "Unions of Evil" talk. They need to free standing pension funds.
People protest outside the courthouse where U.S. Bankruptcy Judge Steven Rhodes ruled that Detroit was eligible for bankruptcy protection and that its workers’ pensions could be cut. (Bill Pugliano / Getty Images / December 3, 2013)
...A bankruptcy judge's ruling (click here) that Detroit's pension funds — like its other creditors — can take a hit might lead other financially troubled cities down the same path, experts say.
Don't force the bankruptcy, but, begin a structured transfer of monies from company, state and city held pensions over a period of years. The federal government did it to the US Post Office, it is time everyone does the same thing. The banks aren't trust worthy. They have proven themselves to be untrustworthy. The only entity that survived 2008 were the federally insured credit unions. Why go anywhere else? They have investment capacity.
By all rights Detroit should have received a federal bailout no differently than New York City, but, getting it through Congress would have been impossible. Pushing Detroit into bankruptcy it assault the meaning of pensions. Employees need to negotiate contributions into 501Ks, but, with the uncertainty of Wall Street that isn't much better a solution. The last resort is setting up pension funds with federally insured Credit Unions and not the employer.
For the states that will seek to shield companies from honoring their contracts today and in the future it gets real simple. Entanglements of any kind with the employers, public or private, is corruption / conflict of interest / however anyone wants to word it. That is how union leaders get in trouble. Currently, the gossip is that unions are consenting to arrangements that lead to issues as Detroit has. Enough of the "Unions of Evil" talk. They need to free standing pension funds.
People protest outside the courthouse where U.S. Bankruptcy Judge Steven Rhodes ruled that Detroit was eligible for bankruptcy protection and that its workers’ pensions could be cut. (Bill Pugliano / Getty Images / December 3, 2013)
December 7, 2013, 10:31 p.m.
...A bankruptcy judge's ruling (click here) that Detroit's pension funds — like its other creditors — can take a hit might lead other financially troubled cities down the same path, experts say.
"I think it's so very unfair," Beasley said. "We retired expecting to get a certain amount of benefits. Now you've pulled the rug out from under us."
It's not just Detroit retirees who are worried about their pensions. Financially troubled cities in California, Illinois and Pennsylvania will soon face decisions on what to do with chronically underfunded pension funds, and experts say the Detroit ruling has made it easier for cities to argue that pensions must be cut.
"If I were a retired public-sector pensioner, I'd be worried today," said Olivia Mitchell, a professor at the Wharton School of Business and the director of the Pension Research Council....
