Taxpayers Spend $86-Billion from the COVID-19″ Rescue” to Union Pension Funds

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Private and public pensions have been struggling to receive an acceptable return on investment. The recent $1.9-trillion COVID-19 stimulus bill contains $86-billion for pension funds. The New York Times wrote: “The $86-billion is a taxpayer bailout for about 185 union pension plans that are so close to collapse that without the rescue, more than a million retired truck drivers, retail clerks, builders and others could be forced to forgo retirement income.” And that “The trend predated the pandemic and is a result of fading unions, serial bankruptcies and the misplaced hope that investment income would foot most of the bill so that employers and workers wouldn’t have to.” -GEG

Both private and public pensions have been having major funding issues and struggling to get a good ROI for a number of years.

So it’s no surprise that any sort of economic relief package presented to Congress would include funds for pensions. Especially since a “bailout” culture seems to have taken root in America.

Where pension debt is a looming danger to taxpayers, via Texas Public Policy Foundation

The recent $1.9 trillion COVID-19 stimulus bill approved by the House is no exception to this “bailout culture.”

The New York Times reported that it contains $86 billion for struggling pensions:

The $86 billion is a taxpayer bailout for about 185 union pension plans that are so close to collapse that without the rescue, more than a million retired truck drivers, retail clerks, builders and others could be forced to forgo retirement income.

The article continued: “The trend predated the pandemic and is a result of fading unions, serial bankruptcies and the misplaced hope that investment income would foot most of the bill so that employers and workers wouldn’t have to.”

Leaving aside the fact that “hope” is shaky ground to base any economic decision on, this appears as another signal that pensions are going the way of the dodo bird.

Read full article here…

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Ed
Ed
3 years ago

IF – the NYT admits to THAT, then, it must be “going on.” As Yakob Smirnov sez’ – WHAT A COUNTRY. But not for long. How about a 3rd world nation ?

michael stephens
michael stephens
3 years ago

Why can’t people in charge manage money accounts? I have to manage my money, and live off what i have each month. I cannot get a bailout. What’s wrong with this picture? All Congress members are the same, no one looks at this money things like it’s there money. It is always someone else’s money. It’s time for business’s to stand on their own or go broke, and go out of business. Including governments, city county, state, and federal. Manage the money or go broke, i don’t care, just quit using the government and taxpayers to bail out your buddies.… Read more »