NY Times story today, Failed Pensions: A Painful Lesson in Assumptions:
“Assumptions that the government considers inadequate contributed to the demise of almost all of the roughly 150 pension plans that failed in the last year. Current detailed information about pension plans is not routinely disclosed, however.
The painful lesson for employees comes as companies press Congress for permanent relaxation of some provisions of the pension funding law. One measure, passed by the House in October, would allow companies to make more favorable interest rate assumptions for the next two years while a panel works on broad changes to the pension funding rules. “
Got that? Even as pension plans are failing left and right, The Party is RELAXING the rules.
Let’s look at the results of The Party‘s long-term effect on our retirement. In the 80’s 401K plans were introduced. 401Ks are a plan for screwing workers out of having their companies paying for their retirement. Guess where the money that the corporations had been paying into retirement funds went? Then, during the stock run-up companies that still offered pensions projected ongoing huge returns, so they didn’t need to put money aside for their workers. Now, they’re allowed to continue to make optimistic projections.
But, of course, the really, really big effect on our retirement is Bush’s massive deficits. That’s our Social Security money being sent to Iraq, folks.