While the Republicans in Congress are coming for your health care and social security, their friends in the “free market” are busy gutting your pension:
A new law will let companies contribute billions of dollars less to their workers’ pension funds, raising concerns about weakening the plans that millions of Americans count on for retirement.
But with many companies already freezing or getting rid of pension plans, many critics are reluctant to force the issue.
Some expect the changes, passed by Congress last month and signed Friday by President Barack Obama, to have little impact on the nation’s enormous $1.9 trillion in estimated pension fund assets. And it is more important, they suggest, to avoid giving employers a new reason to limit or jettison remaining pension benefits by forcing them to contribute more than they say they can manage.
The equation underscores a harsh reality for unions, consumer advocates and others who normally go to the mat for workers and retirees: When it comes to battling over pensions, the fragile economy of 2012 gives the business community a lot of leverage.
Ask yourself- why would blue dogs and Republicans decide that private businesses don’t need to fund their pension plans, but the Postal Service has to have every penny for YEARS TO COME accounted for? Oh, and meanwhile:
Chronically weak stock markets and record low bond yields have pushed company pension deficits in the United States and Britain sharply higher, adding to the burden of retirees living longer than ever before, reports said on Tuesday.
In the United States the aggregate deficit of S&P 1500 companies grew $59 billion in the first half of the year to $543 billion, consultancy Mercer said.
Corporate America is sitting on total liabilities of $2.09 trillion against total assets of $1.55 trillion, Mercer added.