Taxpayers Give $36B to Save Union Pensions

[somarco]

The money being doled out to the Central States Pension Fund is the largest-ever federal bailout of a pension plan. Mr. Biden is using money in his $1.9 trillion COVID-19 relief law to save the fund, which is facing insolvency.

A report by the Pension Benefit Guarantee Corporation (PBGC) found that out of roughly 1,400 insured multi-employer pension plans, 124 have reported that they will run out of money within 20 years. Those 124 pension plans represent about 1 million workers.

As plans become insolvent, they apply to the PBGC, a government organization aimed to protect the plans. But the multi-employer program was in bad shape and faced the likelihood of insolvency in 2026 and a “near certainty” of insolvency by 2027 due to the cost of covering pension failures.


[EXTERNAL LINK] - Biden to spend $36 billion to bail out troubled union pension fund

 

[Newby]

Here’s how unions should work:
You guys negotiate top pay and safe conditions for me. I’ll manage my own benefits.

 

[Life Hawk]

"Too big to fail."
... such a great reason to take money you don't own, print money you don't have, and take control of what's not yours.

Why am I responsible for some else's promises to someone I don't know?

Not the first and sure won't be the last.

You watch, you wait, you'll see.

 

[toolbelt]

The cost of not funding these pensions likely exceeds the costs of doing so.