Comments on: The Pension Fund Problem to Come http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/ FOXBusiness Fri, 20 Nov 2009 18:24:21 -0500 http://wordpress.org/?v=2.8.5.2 hourly 1 By: David Hutson http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2023 David Hutson Sat, 01 Nov 2008 17:07:00 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2023 Hey, as long as we have a strong contender for election to the Presidencey advocating that we trash the U.S. Constitution and allow the Supreme Court to redistribute income and wealth, why not do a preemptive strike. Bush could declare martial law. Send the U.S. Martial to arrest Barney Frank, Chris Dodd, and any of the other scoundrels who are shown to be complicit in this Fannie-Mae/Freddie-Mac scandal. Conduct the necessary trials and then have a public hanging in front of the U.S. Capitol for any found guilty. At the same time Bush could suspend or eliminate the capital gains tax, either for a specified time, or permanently by executive order. Reduce the corporate tax rate to a range of ten to fifteen percent, making the United States a tax haven rather than a tax "prison", (or better yet abolish the income tax and adopt the "Fairtax"). Some very respected economists who obviously know a lot more about this than I do are advocating this kind of comsumption based system for revenue collection. (A number of countries are looking seriously at this idea right now for the purpose of attracting business and industry to locate within thier borders.) And finally, for a long lasting remedy to government spending problems: an executive order establishing a limit on government spending to 20% of GDP (Gross Domestic Product). This could serve as a strong example to any politicians still in or coming in to office. And, this kind of "house cleaning" could probably go a long way toward restoring trust and conficence in our economy and government. What would anyone like to bet that this could cause Bush's public approval rating to go to around 90% withing a week? Right now a huge number of people in this country are hungry for a "hero" to "fix" things, and I submit that this idea is certainly not more radical, (in the long view of things) than what the Democrats and their "Chosen One" are proposing. Once the economic situation stabilizes and the perpetrators of treachery have been dealt with, martial law could be suspended and a new election set for........lets say 2010. Hey, as long as we have a strong contender for election to the Presidencey advocating that we trash the U.S. Constitution and allow the Supreme Court to redistribute income and wealth, why not do a preemptive strike.

Bush could declare martial law. Send the U.S. Martial to arrest Barney Frank, Chris Dodd, and any of the other scoundrels who are shown to be complicit in this Fannie-Mae/Freddie-Mac scandal. Conduct the necessary trials and then have a public hanging in front of the U.S. Capitol for any found guilty.

At the same time Bush could suspend or eliminate the capital gains tax, either for a specified time, or permanently by executive order. Reduce the corporate tax rate to a range of ten to fifteen percent, making the United States a tax haven rather than a tax “prison”, (or better yet abolish the income tax and adopt the “Fairtax”). Some very respected economists who obviously know a lot more about this than I do are advocating this kind of comsumption based system for revenue collection. (A number of countries are looking seriously at this idea right now for the purpose of attracting business and industry to locate within thier borders.) And finally, for a long lasting remedy to government spending problems: an executive order establishing a limit on government spending to 20% of GDP (Gross Domestic Product).

This could serve as a strong example to any politicians still in or coming in to office. And, this kind of “house cleaning” could probably go a long way toward restoring trust and conficence in our economy and government. What would anyone like to bet that this could cause Bush’s public approval rating to go to around 90% withing a week? Right now a huge number of people in this country are hungry for a “hero” to “fix” things, and I submit that this idea is certainly not more radical, (in the long view of things) than what the Democrats and their “Chosen One” are proposing.

Once the economic situation stabilizes and the perpetrators of treachery have been dealt with, martial law could be suspended and a new election set for……..lets say 2010.

]]> By: Steve Bourg http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2020 Steve Bourg Sat, 01 Nov 2008 11:57:37 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2020 Note to Author Brian Sullivan: You write about non-govt and govt pension plans without pointing out that they are WORLDS apart. Non-govt plans (that still exist; they're becoming extinct) are modest by comparison, usually providing about 30% of final pay at age 65 with no COLA adjustment during retirement years. Govt plans are MASSIVE by comparison, usually providing 70% of pay at age 55 WITH COLA adjustments during ret. Non-govt plans have been designed to cost the 'er about 6% of payroll. Govt plans cost 20% of pay to 50% for judges and police.........this sort of massive ripoff of taxpayers is one of the sneakiest aspects of govt entities around the country. By age 55, a govt pension is worth about 5 times as much as a non-govt pension at age 55. A teacher at $60,000 pay who retires at age 55 with $40k/year pension with COLA, has earned a pension that's worth nearly $1million. Judges and police have even more egregiously high values. The pension funding schemes by govt entities are NOT subject to the ERISA minimum required funding rules and interest rate requirements to value the liabilities. The sham on taxpayers goes on and on and on. Note to Author Brian Sullivan: You write about non-govt and govt pension plans without pointing out that they are WORLDS apart. Non-govt plans (that still exist; they’re becoming extinct) are modest by comparison, usually providing about 30% of final pay at age 65 with no COLA adjustment during retirement years. Govt plans are MASSIVE by comparison, usually providing 70% of pay at age 55 WITH COLA adjustments during ret. Non-govt plans have been designed to cost the ‘er about 6% of payroll. Govt plans cost 20% of pay to 50% for judges and police………this sort of massive ripoff of taxpayers is one of the sneakiest aspects of govt entities around the country. By age 55, a govt pension is worth about 5 times as much as a non-govt pension at age 55. A teacher at $60,000 pay who retires at age 55 with $40k/year pension with COLA, has earned a pension that’s worth nearly $1million. Judges and police have even more egregiously high values. The pension funding schemes by govt entities are NOT subject to the ERISA minimum required funding rules and interest rate requirements to value the liabilities. The sham on taxpayers goes on and on and on.

]]> By: gab http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2019 gab Fri, 31 Oct 2008 22:31:27 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2019 The real issue that is hinted at but that's never quite stated outright is this: Stocks are inherently risky. Too risky for retirement plans. We've been sold a bill of goods when it comes to equities. You'll hear, "over extended periods, stocks go up 10% a year." Well, yeah, but that period is VERY long. Too long for the average investor who, at some point, has to cash out and live off the savings. The real issue that is hinted at but that’s never quite stated outright is this: Stocks are inherently risky. Too risky for retirement plans. We’ve been sold a bill of goods when it comes to equities.

You’ll hear, “over extended periods, stocks go up 10% a year.”

Well, yeah, but that period is VERY long. Too long for the average investor who, at some point, has to cash out and live off the savings.

]]> By: Bill Switzer http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2015 Bill Switzer Fri, 31 Oct 2008 12:05:26 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2015 Maybe better off with a fruit jar and a deep hole. But then with increasing age and loss of memory, still no answer. But one thing sure. No hope of Obama wins. Maybe better off with a fruit jar and a deep hole. But then with increasing age and loss of memory, still no answer. But one thing sure. No hope of Obama wins.

]]> By: Dave Swiderski - Penn State University http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2014 Dave Swiderski - Penn State University Fri, 31 Oct 2008 09:10:19 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2014 This is in response to Shawn's blog: If you have a trust issue with banks, have you ever considered joining a credit union? The members are the owners - not the shareholders. Secondly, I disagree with your assertion that the 401K is a bad investment. Everyone's account is down right now but it will come back. Despite the talk about COngress taking over the 401Ks, it will never happen. I can't begin to imagine the public outrage over that. Just remember, the only ones that have gotten hurt in 401Ks are the ones that jumped off the roller coaster early. You cash out now, you're really going to hurt yourself. This is in response to Shawn’s blog:

If you have a trust issue with banks, have you ever considered joining a credit union? The members are the owners – not the shareholders. Secondly, I disagree with your assertion that the 401K is a bad investment. Everyone’s account is down right now but it will come back. Despite the talk about COngress taking over the 401Ks, it will never happen. I can’t begin to imagine the public outrage over that. Just remember, the only ones that have gotten hurt in 401Ks are the ones that jumped off the roller coaster early. You cash out now, you’re really going to hurt yourself.

]]> By: Dave Swiderski - Penn State University http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2013 Dave Swiderski - Penn State University Fri, 31 Oct 2008 09:04:29 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2013 There are so many publicly-traded companies today with under-funded pensions it's scary. To determine if your company is one of them, simply go to the latest annual report and look at the current value of the pension plan asset and then subtract the current pension liability. If it's a negative number, your company's pension is under-funded. There are so many publicly-traded companies today with under-funded pensions it’s scary. To determine if your company is one of them, simply go to the latest annual report and look at the current value of the pension plan asset and then subtract the current pension liability. If it’s a negative number, your company’s pension is under-funded.

]]> By: Kathleen Manning http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2011 Kathleen Manning Thu, 30 Oct 2008 22:17:46 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2011 The "funded status" of pension plans are now required to be reported on a "mark to market" basis. This reflects a very "transactional" view of obligations which are long term in nature. The recent nose dive in the equity markets will certainly reduce the funding status reports of major corporations, but the focus of pension plans should be long term solvency and success. The liabilties are measured based upon current interest rate benchmarks which fluctuate daily - pension obligations are long term and paid out over decades - Private sector pension plans have been over regulated and dis incentivized so that today fewer than 1/3 of private sector employees are currently covered. This represents a reduction in the standared of living for many Americans. The congress has done nothing to encourage employers to maintain these plans and instead punishes them with more regulation. By the way, Federal employees and most public sector employees have pension plans and these public sector plans have escaped the onerous pension regulations imposed by Congress on the private sector plans. The “funded status” of pension plans are now required to be reported on a “mark to market” basis. This reflects a very “transactional” view of obligations which are long term in nature. The recent nose dive in the equity markets will certainly reduce the funding status reports of major corporations, but the focus of pension plans should be long term solvency and success. The liabilties are measured based upon current interest rate benchmarks which fluctuate daily – pension obligations are long term and paid out over decades – Private sector pension plans have been over regulated and dis incentivized so that today fewer than 1/3 of private sector employees are currently covered. This represents a reduction in the standared of living for many Americans. The congress has done nothing to encourage employers to maintain these plans and instead punishes them with more regulation. By the way, Federal employees and most public sector employees have pension plans and these public sector plans have escaped the onerous pension regulations imposed by Congress on the private sector plans.

]]> By: DAVE-Y http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2004 DAVE-Y Thu, 30 Oct 2008 14:27:29 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2004 This video is 2 hrs long but explains exactly what is going on. It has ALL happened before. It is ALL choreographed. The politicians are bought and paid for and the Constitution might as well be written on toilet paper. We neeed to bring back the guillotine and return the money supply to the governments and the people. This ongoing gang-rape of the taxpayers by the banks and the governments does NOT have to happen. Educate yourself. Eventually enough people will KNOW whats going on and we can change things. This video will likely get spiked but it's worth the effort. http://video.google.com/videoplay?docid=-515319560256183936&q=the+money+masters&total=1234&start=0&num=10&so=0&type=search&plindex=0 This video is 2 hrs long but explains exactly what is going on. It has ALL happened before. It is ALL choreographed. The politicians are bought and paid for and the Constitution might as well be written on toilet paper. We neeed to bring back the guillotine and return the money supply to the governments and the people. This ongoing gang-rape of the taxpayers by the banks and the governments does NOT have to happen.

Educate yourself. Eventually enough people will KNOW whats going on and we can change things. This video will likely get spiked but it’s worth the effort.

http://video.google.com/videoplay?docid=-515319560256183936&q=the+money+masters&total=1234&start=0&num=10&so=0&type=search&plindex=0

]]> By: Gloria http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-2000 Gloria Thu, 30 Oct 2008 04:39:25 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-2000 I'm hearing rumors that companies will stop matching their employee's 401K contributions. I’m hearing rumors that companies will stop matching their employee’s 401K contributions.

]]> By: Jim Hermann http://briansullivan.blogs.foxbusiness.com/2008/10/27/the-pension-fund-problem-to-come/comment-page-1/#comment-1999 Jim Hermann Thu, 30 Oct 2008 04:10:30 +0000 http://briansullivan.blogs.foxbusiness.com/?p=249#comment-1999 Oh, those pesky pensions! What pensions? That's what most people are saying. The general public is under the impression that pensions taken over by the PBGC receive the full benefit of their pension. The truth is you'll be lucky to get ten cents on the dollar. Having been in the airline industry for 35 years having worked for TWA, on my 65th birthday I will receive $152 a month pension. What's so evil about all these companies destroying their pension plans, you're too old to work another 35 years somewhere else to try to replace what's been destroyed. The PBGC has taken over so many pensions of steel and airline workers its almost bankrupt itself. Now that most companies no longer have conventional pensions as a defined benefit plan, now they have started to eliminate the 6% (or less) match on the 401K plan basically offering nothing at all. A poor trade off compared to the old guaranteed benefit. In addition to the $152 a month I'll receive from the PBGC, since last summer I've lost $100,000.00 in my own 401K. Well, at least I don't have to worry what I'll do with my spare time in early retirement! Oh, those pesky pensions! What pensions? That’s what most people are saying. The general public is under the impression that pensions taken over by the PBGC receive the full benefit of their pension. The truth is you’ll be lucky to get ten cents on the dollar. Having been in the airline industry for 35 years having worked for TWA, on my 65th birthday I will receive $152 a month pension. What’s so evil about all these companies destroying their pension plans, you’re too old to work another 35 years somewhere else to try to replace what’s been destroyed. The PBGC has taken over so many pensions of steel and airline workers its almost bankrupt itself. Now that most companies no longer have conventional pensions as a defined benefit plan, now they have started to eliminate the 6% (or less) match on the 401K plan basically offering nothing at all. A poor trade off compared to the old guaranteed benefit. In addition to the $152 a month I’ll receive from the PBGC, since last summer I’ve lost $100,000.00 in my own 401K. Well, at least I don’t have to worry what I’ll do with my spare time in early retirement!

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