We weren't kidding.
A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people.
As FOX Business Network’s Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well.
Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die.
How bad IS the union-pension-fund problem?
The report found that 35% of non-union plans, compared to 17% of union pension plans, are fully funded, among large plans. At the 80% funding threshold, 86% on non-union pensions comply, but only 59% of union pensions met the threshold. 1% of non-union pensions were critical, while 13% of union pensions were. Small private pension plans also fair better than small union pension plans.That's bad.
Perhaps the Teamsters' Central States Fund was smart by "investing" in Las Vegas .....ahhhh.........gentlemen. Unlike other Union pension funds, the Vegas 'gents' always paid off.
Unions are non-profit, supposedly optional,volunteer organizations that workers choose to join. They do not really create jobs except for some very overpaid leaders who have obviously not done a very good job of handling union funds, but are terrific at rewarding themselves. The American tax payer should not have to make up for their incompetence just because they have such great influence in delivering the vote.
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