Pension Crisis Nears Disaster Levels
A little-noticed provision in the recent government spending agreement created a select congressional committee to craft what could effectively be a federal rescue of as many as 200 multiemployer pension plans. Most of these plans are teetering on the brink of insolvency, as benefits owed to workers vastly exceed the plans' ability to pay.1 "This is welcome news, but government action alone can't solve this," said
The situation with public employee pension plans--those designed to pay future retirement benefits to government workers such as firefighters, policemen and teachers--has been widely described as a disaster waiting to happen. The money for these funds comes from two sources: taxpayers, and investment growth. Most developed nations, including the
Unfortunately, pension problems are by no means limited to the public sector. A recent study shows that 186 of the 200 largest defined-benefit plans in the S&P 500--a whopping 93%--are not fully funded, and this is having significant consequences for employees. Last summer, for example, the 70,000 participants in the
By far, the most seriously underfunded pension plan in the S&P 500 is that of
"I don't know what
About
1. Tankersley, Jim, and Rappeport, Alan, "1.5 Million Retirees Await Congressional Fix for a Pension Time Bomb,"
2. Biggs, Andrew, "
3. Edesess, Michael, "The reason underfunded pensions are a disaster waiting to happen," MarketWatch,
4. Kochkodin, Brandon, and Meisler, Laurie, "S&P 500's Biggest Pension Plans Face
5. Egan, Matt, "
Read the full story at http://www.prweb.com/releases/2018/04/prweb15441273.htm
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