1. kenyan care remains, no vote. Libtards and msm declare massive victory.
    Dismiss Notice
  2. Have a great weekend!
    Dismiss Notice
  3. Week of 3/25/2017 Closing prices & Chg Over Last Wk---- Gold $1248.50-- UP 18.30 Silver $17.75-- UP 34 Oil $47.97-- DOWN 134 TICS USD $99.42 -- DOWN 66 tics

The Suddenly Poor Life: Millions Will Lose Their Pensions

Discussion in 'Coffee Shack (Daily News/Economy)' started by Goldhedge, Mar 4, 2016.



  1. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    103,296
    Likes Received:
    34,071
    Trophy Points:
    113
    Collapsing Pensions Are “About to Bring Hell to America”

    Mac Slavo
    March 15th, 2017
    SHTFplan.com


    Along with the student loan debt bubble and other major financial factors, the looming pensions crisis is bound to be the death of us all.

    Because it’s based on a future promise to pay, it has long been a benefit dangled to solve strikes and union disputes – because, in the end, it is just more debt, whether private or public.

    With tens of trillions in unfunded liabilities, the weight of an avalanche remains dangling over our heads. An aging population is cashing in on needed retirement benefits while the younger generations must support multiples that are unsustainable financially.

    Somewhere between the retiree that needs clothing, food and lodging, and the bankruptcy of cities and state governments is the makings of the next economic crisis.

    via AgainstCronyCapitalism.org:

    This is one of those things that few will pay attention to until it’s a 5 alarm fire. Then the policymakers will run around with their hands in the air saying they didn’t see it coming.

    Of course they did. But addressing the problem is hard and will make people unhappy in the short term.

    This blog pointed out the sad, and quiet fact that entities like the government of South Carolina are deep in debt over pensions. Everywhere there are failing social systems.

    And somewhere, the rubber is going to met the road, and people are going to get hurt.

    As SHTF previously reported:

    In 2014 a new Federal law made it possible for pension funds to cut benefits for their recipients.

    n October of [2015] the canary in the coal mine fell over and died when Illinois announced that the State was posting pension payments because it ran out of money.

    Fast forward a few more months and things have been taken to the next level. The Central State pension fund in Kansas became the first such fund to take advantage of the 2014 law as 400,000 Americans who depend on their monthly pension income to pay for such things as their mortgage, groceries and medical expenses saw an average of $1,400 per month sliced of their monthly benefits.

    Unfortunately, there may be no avoiding some very painful lapses in checks in the difficult years ahead.

    As Market Watch reports:

    But take a look South Carolina’s government pension plan, which covers roughly 550,000 people — one out of nine state residents — but is a staggering $24.1 billion in the red.

    This is not a distant concern, but a system already in crisis.

    Younger workers are being asked to do much more to support the pensions of retirees. An analysis by the The Post and Courier of Charleston noted recently that “Government workers and their employers have seen five hikes in their pension plan contributions since 2012, and there’s no end in sight.” (Most now contribute 8.66% of their pay, vs. 6.5% before the changes.) At the same time, the pension fund has been chasing more stocks and alternative investments instead of relying on stable investments like bonds that may be much less volatile but generate only meager returns.

    And if that’s not troubling enough, South Carolina’s pension fund is far from alone.

    Yeah.

    California’s Calpers public retriree system is notoriously underfunded and doomed to implode. Chicago, Detroit and other urban wastelands are sagging under abysmal debt. Dallas, Texas pensions went insolvent. Puerto Rico is nothing but a propped up holding corp(se).

    Something massive has been swept up just under the carpet.

    Read more:

    Screwed Over Retirees: Dallas Suspends Withdrawals From “Insolvent Pension System”

    $8 Trillion Short On Pensions?! “No One Goes To Jail Because Establishment Is Complicit”

    The System Is About to Burst Open: TRILLIONS In Unfunded Pensions “Foreshadow A Bleak Future”

    Warning: You May Be Next: 400,000 People Just Had Their Pensions Cut By 50%: “Going to Happen To The Rest Of Pensions in the United States”

    Click here to subscribe: Join over one million monthly readers and receive breaking news, strategies, ideas and commentary.

    Please Spread The Word And Share This Post

    http://www.shtfplan.com/emergency-p...s-are-about-to-bring-hell-to-america_03152017
     
    TAEZZAR and gringott like this.
  2. Uglytruth

    Uglytruth Gold Member Gold Chaser

    Joined:
    Apr 6, 2011
    Messages:
    3,270
    Likes Received:
    3,755
    Trophy Points:
    113
    https://www.bloomberg.com/news/arti...slash-pensions-for-retirees-of-defunct-agency

    Calpers Slashes Pensions for Retirees of Defunct Agency
    by
    Romy Varghese
    March 15, 2017, 1:12 PM EDT March 15, 2017, 2:46 PM EDT
    • Decision to cut retirement checks is the second in four months
    • Four cities that created agency could pay bill and save checks
    The California Public Employees’ Retirement System on Wednesday approved cutting the benefits of a small group of retirees in the second such move in four months.

    The reduction, effective in July, was triggered by the failure of a defunct public agency, the East San Gabriel Valley Human Services Consortium, to pay Calpers the entire cost of covering the pensions of its former employees.

    Most of the roughly 200 workers of the job-training service -- of which 62 are currently receiving pensions -- would see their benefits reduced by 63 percent, the rate by which the agency fell short of its obligations, according to meeting documents.

    "This is a terrible situation we all find ourselves in, but we have to protect the fund so we have to take this action," Calpers board member Bill Slaton said before voting.

    The step is likely to be replicated as communities in California struggle to meet rising pension obligations, said Dane Hutchings, a lobbyist for the League of California Cities, before the board meeting.

    "It’s incredibly unfortunate, but unless something can be done legislatively or by other means, retiree benefits are going to get cut significantly," he said.

    Across the country, states and local governments have about $2 trillion less than what they need to cover retirement benefits -- the result of investment losses, inadequate contributions and perks granted in boom times.

    Calpers says it’s following its fiduciary responsibility. It doesn’t set benefits but manages them on behalf of local governments, most of which are paying what they owe. Permitting monthly checks to flow to retirees whose former employers haven’t paid their bills undermines a system that has just two-thirds of what it needs to cover liabilities due in the years ahead.

    Calpers had asked the cities that formed the agency known locally as LA Works -- Azusa, Covina, Glendora, and West Covina -- to pay the debt to the retirement plan, but they declined, pointing to the lack of a legal obligation. The consortium went out of business in 2014 after Los Angeles County severed its relationship, citing overbilling.

    If the cities do end up taking over the entity’s debt within 60 days, the retirees would avoid the reduction, according to the Calpers’ action Wednesday.

    That’s what retirees will ask representatives of those communities on the agency’s board, which is set to meet later Wednesday, said Sandra Meza, who stands to lose much of her $3,300 monthly pension. They will appeal to the cities to at least pay the current bill to give them more time to come up with a plan, she said.

    "We only had two months notice," Meza said. "We need to regroup and consider which path to take."

    Calpers in November approved reducing retiree benefits for former workers in the tiny city of Loyalton.
     
    searcher, TAEZZAR and gringott like this.
  3. TAEZZAR

    TAEZZAR LADY JUSTICE ISNT BLIND, SHES JUST AFRAID TO WATCH Midas Member Site Supporter

    Joined:
    Apr 2, 2010
    Messages:
    9,214
    Likes Received:
    13,893
    Trophy Points:
    113
    Location:
    ORYGUN
    As Ye Sow So Shall Ye Reap !!! ahahahahahahahha
     
    searcher and gringott like this.
  4. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    103,296
    Likes Received:
    34,071
    Trophy Points:
    113
  5. Brio

    Brio Midas Member Midas Member

    Joined:
    Mar 30, 2010
    Messages:
    6,597
    Likes Received:
    6,189
    Trophy Points:
    113
    I work for a very huge company that has many plants all across Canada and the US. Every day I hear co-workers say how pleased they are with their pensions, their retirement plans. My site is not unionized but the bennies are the same as the plants that are. I'm a contractor, I do not get benefits like h/c, pension. I get quite a bit more per hour but I cost the company a lot less. And I get to decide where my retirement savings go. They just don't get it. They do not get that the money they are told they'll get when they retire after 40 years of work will not be there. And I've got quite a few more years to pay the boomers and keep stacking.
    :)
     
  6. mtnman

    mtnman Gold Member Gold Chaser Site Supporter

    Joined:
    Mar 30, 2010
    Messages:
    2,983
    Likes Received:
    4,227
    Trophy Points:
    113
    Gender:
    Male
    Occupation:
    Self Employed Ex-shipyard Machinist
    Location:
    East Tennessee
    Stolen from another site.



    This is something about which many people are asking!

    KEEP PASSING THIS AROUND UNTIL EVERY ONE HAS HAD THE OPPORTUNITY TO READ IT... THIS IS SURE SOMETHING TO THINK ABOUT!!!!
    THE ONLY THING WRONG WITH THE GOVERNMENT'S CALCULATION OF AVAILABLE SOCIAL SECURITY IS THEY FORGOT TO FIGURE IN THE PEOPLE WHO DIED BEFORE THEY EVER COLLECTED A SOCIAL SECURITY CHECK!!!

    WHERE DID ALL THAT MONEY GO?
    Remember, not only did you and I contribute to Social Security but your employer did also. It totaled 15% of your income before taxes.
    If you averaged only $30K over your working life, that's close to $220,500. Read that again. Did you see where the Government paid in one single penny? We are talking about the money you and your employer put in a Government bank to insure you and me that we would have a retirement check from the money we put in, not the Government. Now they are calling the money we put in an entitlement when we reach the age to take it back. If you calculate the future invested value of $4,500 per year (yours & your employer's contribution) at a simple 5% interest (less than what the Government pays on the money that it borrows).

    After 49 years of working you'd have $892,919.98. If you took out only 3% per year, you'd receive $26,787.60 per year and it would last better than 30 years (until you're 95 if you retire at age 65) and that's with no interest paid on that final amount on deposit! If you bought an annuity and it paid 4% per year, you'd have a lifetime income of $2,976.40 per month.

    THE FOLKS IN WASHINGTON HAVE PULLED OFF A BIGGER PONZI SCHEME THAN BERNIE MADOFF EVER DID.
    Entitlement my foot; I paid cash for my social security insurance! Just because they borrowed the money for other government spending, doesn't make my benefits some kind of charity or handout!!

    Remember the benefits for members of Congress? + free healthcare, + outrageous retirement packages, + 67 paid holidays, + three weeks paid vacation, + unlimited paid sick days. (DID WE VOTE THIS FOR THEM???)

    Now that's welfare, and they have the nerve to call my social security retirement payments entitlements?

    They call Social Security and Medicare an entitlement even though most of us have been paying for it all our working lives, and now, when it's time for us to collect, the government is running out of money. Why did the government borrow from it in the first place? It was supposed to be in a locked box, not part of the general fund.
     
  7. searcher

    searcher Mother Lode Found Site Supporter ++ Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    103,296
    Likes Received:
    34,071
    Trophy Points:
    113
    No.

    This is what they voted to give themselves and government workers with the tax money you pay. And they do this while literally crapping on each and everyone who pays taxes.
     
    andial, Hystckndle and Uglytruth like this.
  8. tom baxter

    tom baxter back from 2004

    Joined:
    Oct 21, 2016
    Messages:
    302
    Likes Received:
    284
    Trophy Points:
    63
    Gender:
    Male
    Occupation:
    Retired now
    Location:
    Australia
    It was a scam alright, just a tax really but it was cruel to pretend they would give it back one day.
    People never question these things in the good times, only in the bad times, when it's too late to take action.

    I'm reminded of Joseph who took and stored grain in Egypt for 7 years to counter 7 years of famine God had showed him in a vision was coming. Interestingly the people of Egypt didn't save grain personally, and when the dearth came they lost all their savings, and their land, and even their freedom in exchange for the food they themselves had grown and provided to Joseph to stockpile. There was no free ride.
     

Share This Page