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2014-10-31 -Land of the Free

Interesting precedent - no pension plan is safe from bankruptcy

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Posted by Skidmark 2014-10-31 00:00|| || Front Page|| [11131 views ] Top

#1 It would seem a no-brainer that, once the party guaranteeing the pension goes bankrupt, there AIN'T NO MO PENSION.

Posted by Anguper Hupomosing9418 2014-10-31 00:33|| 2014-10-31 00:33|| Front Page Top

#2 The employer once could use the pension as a negotiated deferred payment income strategy to offset a portion of the employee's wages. An allowable, DoL sanctioned Ponzi scheme.
Now its just wages, if you can find them.

Posted by Skidmark 2014-10-31 01:42|| 2014-10-31 01:42|| Front Page Top

#3 The headline is extremely misleading. The bankruptcy judge approved of leaving the pensions alone because medical benefits were eliminated, inasmuch as no money had been set aside by Stockton to pay for it.

Posted by badanov 2014-10-31 03:11|| http://www.chriscovert.net 2014-10-31 03:11|| Front Page Top

#4 Anyone remember 401k employer matching funds ?

Anyone remember 401k's ?

Anyone remember employers ?

Posted by Besoeker 2014-10-31 03:13|| 2014-10-31 03:13|| Front Page Top

#5 Tax-free municipal bonds? Better look closely at their bottom line

Posted by Frank G 2014-10-31 09:14|| 2014-10-31 09:14|| Front Page Top

#6 All pensions are just promises unless & until actually paid out to the beneficiaries. Lots of governmental pension plans have made promises they can't keep. As we are finding out. Governmental bonds are also simple promises of future payments.
A court which attempts to force a bankrupt governmental entity to pay out a pension, will have to levy taxes directly, I see no other options.
Bueller? Anyone?

Posted by Anguper Hupomosing9418 2014-10-31 11:51|| 2014-10-31 11:51|| Front Page Top

#7 The City in most cases hasn't made its required pension contributions in years. Oakland is in similar shape, squandering money on every loser deal it can dream up and missing 20 years worth of Policeman's and Fireman's pension payments. Now they just shrug their shoulders and want the courts to issue a retro-active haircut to pensioners. Retro-Active, I never heard of that one before!

Posted by Jomong Gray3113 2014-10-31 13:03|| 2014-10-31 13:03|| Front Page Top

#8 Of course no one in the higher levels of the unions ever took the time to do the economics themselves, ie income vs outlays and adjust 'demands'/expectations accordingly over the long haul. It's the same magic money tree that the Feds use for Social Security and future debt payments. And why the Fed/Tres keeps the inflation rate artificially at near zero. Lies, upon lies, upon lies.

Posted by Procopius2k 2014-10-31 16:16|| 2014-10-31 16:16|| Front Page Top

#9 Unions typically don't ever learn the #1 rule of parasites:

Don't kill the host!

Posted by CrazyFool 2014-10-31 17:15|| 2014-10-31 17:15|| Front Page Top

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