ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Tuesday, June 07, 2016

The Left’s Not-So-Secret Agenda for Bailing Out Union Pensions

Unions — not Congress or taxpayers
— made promises that they cannot keep
and the unions  — not taxpayers — must
be held accountable for those promises. 
by Rachel Greszler: The administration and congressional Democrats are teaming up to force a taxpayer bailout of private unions’ underfunded and over-promised pension benefits.

On May 6, the Treasury Department rejected a plan by the Central State Teamsters trucking union to reduce some of its pension benefits to prevent the plan from going belly up within a decade. And on May 25, Senate Democrats sent a letter to Senate Majority Leader Mitch McConnell calling for Congress to “protect” the United Mine Workers of America’s health and pension benefits by passing the Miners Protection Act (S.1714), and to “address” troubled union plans like Central State’s.

“Protect” and “address” are code for bailout.

These proposals would bail out select, and politically influential, private-sector union pension plans. Half a billion a year for the United Mine Workers of America or even a couple billion a year for Central State may not seem all that significant, but it would open the bailout floodgates to more than $600 billion in unfunded pension promises across private union plans. And although single employers have far less political clout than the unions, they hold another $800 billion in unfunded pension promises that could fall to taxpayers.

According to the Democrats’ letter, “We [Congress, using taxpayer dollars] have a responsibility to the American people to solve the real problems they face every day.”

But these real problems were caused by reckless and irresponsible union members and pension plan trustees who paid out benefits to workers that didn’t earn them and promised far more in future benefits than they set aside to pay them.

Unions—not Congress or taxpayers—made promises that they cannot keep and the unions—not taxpayers—must be held accountable for those promises.

Yet, the Miners Protection Act would give the Mine Workers of America—a select, coal miner’s union pension plan—direct access to nearly half a billion dollars per year in taxpayer funds.

Lawmakers and taxpayers should not be fooled by the fact that those taxpayer dollars would first funnel through the abandoned mine land reclamation fund in hopes of erasing the appearance of a taxpayer bailout.

Despite the fact that the United Mine Workers of America contributes less than 10 percent of incoming revenues to the abandoned mine land fund, it would be given exclusive access to it to cover its unfunded retirees’ pension and health benefits while other coal mining companies would be left in the dark.

With even larger unfunded liabilities, the Central State Teamsters is the other pension plan in play for a taxpayer bailout. The Treasury rejected the plan’s application to reduce benefits so that it could prolong its solvency.

While preventing up to 300,000 pensioners from immediate benefit cuts may have been politically expedient given the November elections, without the proposed reductions or a taxpayer bailout, Central States’ pensioners will eventually face much deeper and widespread cuts in the not-too-distant future. That is, unless Democrats get their way and taxpayers foot the bill.

A bailout of any private pension fund would be pre-emptive. The government already provides a backstop for failed pension benefits through the Pension Benefit Guaranty Corporation, a government agency. If a multi-employer pension fund becomes insolvent, Pension Benefit Guaranty Corporation steps in and pays up to $12,870 per year in insured pension benefits.

This Pension Benefit Guaranty Corporation-guaranteed level would be a big cut in benefits for most pensioners, but cuts could be even greater. The corporation’s multi-employer program is on track to become insolvent within a decade, at which point it could only afford to pay about $1,500 per year, or $125 per month.

Congress should take action now to address multiemployer pensions, but that action should include rules that require multiemployer union pensions to set aside adequate funds to pay promised benefits, and reforms to the Pension Benefit Guaranty Corporation’s multi-employer program to make it operate more like a private insurance company, such as using risk-based premiums and giving PBGC more control over its operations so that its solvency is not dependent on congressional action.
Rachel Greszler is a senior policy analyst in economics and entitlements at The Heritage Foundation.

Tags: Ithe left, progressive, not-so secret, agenda, bailing out union ensions, Rachel Greszler, Heritage Foundation To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 10:44 AM - Post Link


Anonymous Shirley Reynolds said...

They better check it out before they take a bail out retirement. Not so good.


Post a Comment

<< Home

national debt
Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You Receive One Email Each Morning
With Prior Days Articles / Toons / More

Also, Join us at:

Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru
Married 48yr #Conservative #Constitution #NRALife #GunRights #USAF 22yr #military #veteran #Christian #CCOT #ProLife #TEAParty #GOP #TCOT #SGP #schoolchoice

Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
Sunshine Review

Facebook Accts - Dr. Bill Smith
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Baxter County Republicans, AR
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire
Republican Liberty Caucus of Arkansas
The Gold Standard
Twin Lakes Republican Women
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Let's Mine AR Lignite NOW!
Personhood Initiative
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.


Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
AR Republican Assembly
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Baxter Co. GOP Assembly
Baxter County Republicans
Benton Co. GOP Assembly
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
American Committment
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Curtis Coleman Institute for Constitutional Policy
Declaration of Am. Renewal
Eagle Forum
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist Today
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts

Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer

Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to netvibes

Add to Bitty Brouser

Add to The Free Dictionary

Powered by Blogger

Politics Blogs
Politics blog

  • How To Exchange Links!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting the beliefs associated with the ARRA, this blog/site is not controlled by nor funded by the ARRA. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2016 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.