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Valued Social Butterfly
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Re: Capitalism Allows Corps. To Dump Annuity Pensions

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Message 11 of 14

@rk9152 wrote:

You guys (generic) seem to think that free market capitalism is not the ideal model - do you have an alternative??


That would be well regulated Capitalism - you know, the kind that isn't allowed to posion our food, water and air, a Capitalism prevented from committing usuary and calling it "expanding credit", a Capitalism that cannot sell bogus securities like derivatives and mortgage backed securities based on nonperforming mortgages, and most of all a Capitalism where the proceeds are divided according to the recepient's contribution, not their position on the organization chart - you know, the kind we had from 1936 until 1970 when every generation went farther than the one before, the middle class was expanding and our infrastructure, including schools and scientific research, was the envy of the World.

 

But that WOULD go against the gibberish in Atlas Shrugged, so most Republicans would disagree, not because they're evil, just tragically misinformed about actual economics vs laffer curves and other totally discretided supply-side nonsense.

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Re: Capitalism Allows Corps. To Dump Annuity Pensions

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Message 12 of 14

You guys (generic) seem to think that free market capitalism is not the ideal model - do you have an alternative??

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Re: Capitalism Allows Corps. To Dump Annuity Pensions

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Message 13 of 14

@michstuder, I would offer one slight modification to the title of your thread. It should read" Capitalism REQUIRES Corporations dump annuity pensions.

Paying people who no longer produce the goods and services that generate profits is totally contrary to Capitalism, and since as Milton Freedman famously said "The only oblibation a Corporation has is to maximize profits for its stockholders" (or words to that effect-might not be an exact quote) making such payments is contrary to the Corporations sole obligation.

 

Anyone who expects their employer to live up to ANY promise of payment AFTER they retire is staking their "golden years" on wish fulfilment.

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Treasured Social Butterfly
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Capitalism Allows Corps. To Dump Annuity Pensions

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Message 14 of 14

It just became easier for employers to dump retirees' pensions

 

With no fanfare in early March, the Treasury Department issued a notice that allows employers to buy out current retirees from their pensions with a one-time lump sum payment. The decision reverses Obama-era guidance, issued in 2015, that had effectively banned the practice after officials determined that lump-sum payments often shortchanged seniors.

WHERE ARE THE INCUMBENT DEMOCRATS IN CONGRESS?

Now, advocates for the elderly worry that millions of people receiving monthly pension checks could be at risk.

"Permitting plans — for their own financial benefit to replace joint and survivor or other annuities with lump-sum payments will reduce the retirement security of both workers and their spouses," AARP Legislative Counsel David Certner said.

 
Pensions, which are insured by the federal Pension Benefit Guaranty Corporation in case employers go bankrupt, still cover 26.2 million people across 23,400 single-employer plans. But that number has been shrinking faster than it would naturally as companies close their plans to new hires.
 
Here's why: Pensions are big liabilities for companies, which Wall Street ratings agencies don't like.
 
To remain solvent, pension funds depend on their investments in bonds, stocks and other securities, but recent swings in financial markets serve as a reminder that positive returns are not a sure thing. Pensions are also expensive to maintain. The premiums the PBGC charges per covered employee have more than doubled over the past decade as part of a budget gimmick to fill other government revenue holes.
 
Federal law gives employers an out. Companies can offload their pension obligations to the private sector by purchasing an annuity plan for each retiree from an insurance company. Or, for an even cheaper option, they can offer their employees a lump sum up front according to a formula that approximates how much a retiree would receive if they lived an average number of years.
 
In the insurance world, this strategy is known as "de-risking," because it transfers pension risk from the company's balance sheet to an insurance company and to retirees. The lump-sum option became particularly popular starting in 2012, when changes enacted in a 2006 law that made them more financially appealing took full effect.

 

Source - https://www.cnn.com/2019/03/20/economy/lump-sum-pensions-retirement/index.html

 

 

 

( " China if You're Listening - Get Trumps Tax Returns " )

" )
" - Anonymous

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