TexasFreedom
A True Doomsday Prepper
http://www.washingtonexaminer.com/1...lans-expected-to-go-insolvent/article/2632398
A part of the article:
"Traditionally, participants in healthy multi-employer pension plans have been forced to pay for the guaranteed benefits of retirees and their families in failed plans," said Joshua Davis, a principal consulting actuary at Cheiron. "If this happens again, it will push other plans into insolvency with terrible consequences for communities across the country."
So a summary: there are many pensions that multiple companies share, for example Teamsters. So several companies all pay into one big bucket. But as some of those companies start failing, the other companies get even greater responsibilities which can cause them to fail. Domino affect. An example:
In 2006, the United Parcel Service paid $6.1 billion to pull out of the drastically underfunded Teamsters' Central States plan.
Note that this is a private fund, but MANY public retirement funds work the same way. For example Michigan, cities are starting to file bankruptcies, the 'state' pensions that those cities are part of will get screwed, and that could cause other cities to have further financial problems.
A part of the article:
"Traditionally, participants in healthy multi-employer pension plans have been forced to pay for the guaranteed benefits of retirees and their families in failed plans," said Joshua Davis, a principal consulting actuary at Cheiron. "If this happens again, it will push other plans into insolvency with terrible consequences for communities across the country."
So a summary: there are many pensions that multiple companies share, for example Teamsters. So several companies all pay into one big bucket. But as some of those companies start failing, the other companies get even greater responsibilities which can cause them to fail. Domino affect. An example:
In 2006, the United Parcel Service paid $6.1 billion to pull out of the drastically underfunded Teamsters' Central States plan.
Note that this is a private fund, but MANY public retirement funds work the same way. For example Michigan, cities are starting to file bankruptcies, the 'state' pensions that those cities are part of will get screwed, and that could cause other cities to have further financial problems.
