Take Back America
Congress is gone for August but that hasn't stopped unions from quietly mobilizing to push through a big new priority this fall: a pension bailout. Big Labor is going Code Red on the issue, in the face of a looming accounting change that would force companies to confront the Ponzi-style nature of multi-employer pension plans, says the Wall Street Journal.
Currently, there are some 1,500 union-run retirement vehicles which fall into this class, in which companies across an entire industry pay into a single pension pool. Hundreds of these multi-employer pools are badly underfunded, thanks to years of labor funneling money into new pay and benefits, rather than into the funds for retirees, says the Journal.
The big problem with these plans:
This cause has taken on new political urgency, and no less than Senate Majority Whip Dick Durbin has endorsed the bill. The reason for the rush is new rules that may soon be issued by the Financial Accounting Standards Board (FASB). Those proposed rules would expose the multi-employer time bomb, says the Journal.
Source: Editorial, "The Next Pension Bailout New momentum to dump union retirement burdens on taxpayers," Wall Street Journal, August 15, 2010.
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