Warning to pensioners

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There have been a great many plans offered up right here at home that include seizure of all 401K retirement plans along with private pensions. All of them naturally assert that it is in the best interests of the pensioners that this be done since everyone knows that our government knows best and that they would never cheat us out of anything. There are trillions of dollars in private money that the democrats would love to get hold of.

Just think of all the altruistic programs that could be invented if they could just borrow that money for a short time.

<sarc>
 
In the UK (for now):
http://www.telegraph.co.uk/finance/...-face-new-tax-grab-on-inheritance-trusts.html
 

https://www.marketwatch.com/story/t...ted-by-the-new-rules-2019-12-27?mod=home-page

It's not outright confiscation, but govco is going to vacuum up a larger share of that pie. Very sneaky.
 

Billions gone from state pension funds​

With markets down, cash has been going out faster than it comes in at big public investment plans

by Joseph N. DiStefano
Updated
Oct 29, 2022

These are grim times for the public’s money, when big pension plans can lose billions in a few months.

When stock values crash, as they did in 2001 and 2008, a rebound can take years. Patient investors — university endowments, retirement savers with other income — can wait. But pensions have to keep paying retirees, and a long downturn makes them much more expensive for employers. And when those retirees worked for the government, taxpayers foot the bill.

The value of PSERS, the Pennsylvania school pension fund, fell to $69.8 billion on June 30, from $74.6 billion March 31. That’s a 6% drop in three months, due mostly to falling stock and bond prices, staff and advisors told trustees at their meeting Oct. 21.

Billions gone from state pension funds

With markets down, cash has been going out faster than it comes in at big public investment plans
www.inquirer.com
 
A big pile of debt that Chester has on its plate is nearly $40 million in past-due pension payments and penalties as of the end of 2021. Officials say that figure does not even reflect the full amount, which would include interest.

If the city were to pay off the debt and the $14.1 million due to the pension fund next year, then the nearly $54 million payment would account for 88% of the city’s budget in 2023, according to the receiver’s office.

Full article here:

 
We had all kinds of teachers pensions issues until Mr. Corona came to town. All issues of funding went away.
 
Across the pond...............

Bank of England calls for 'urgent' global action after near-collapse of UK pension funds​

Story by Elliot Smith • 3h ago

  • A number of pension funds were hours from collapse when the central bank intervened in the long-dated bond market.
  • The Bank emphasized the need for regulators across jurisdictions to strengthen the resilience of the sector, saying that "there is a need for urgent international action to reduce risks in non-bank finance."
LONDON — The Bank of England on Tuesday called for "urgent international action" from regulators on non-bank financial institutions after it was forced to rescue U.K. pension funds in September.

A number of pension funds were hours from collapse when the central bank intervened in the long-dated bond market. It came after a series of massive moves in interest rates on U.K. government debt exposed vulnerabilities in liability-driven investment (LDI) funds, which are held by U.K. pension schemes.

 
This thread started with warnings about the potential for government(s) to raid pension funds. While the legal infrastructure for confiscations have been threatened and/or enacted, now we get to worry about economic/banking malfeasance making the whole thing go poof. Counterparty risk is never boring!
 
Back in the states..............

1,000 salaried Ford workers retire after pension warning from automaker​

Story by Phoebe Wall Howard and Susan Tompor, Detroit Free Press • Yesterday 2:56 PM

DETROIT – Retirement-eligible salaried employees at Ford were warned and advised about retiring this year to maximize a lump sum pension payment.

The company confirmed Wednesday that approximately 1,000 employees elected to retire by the Dec. 1 deadline.

"If you are considering retiring and choosing the lump sum option, it is important to understand the impact of higher interest rates on your individual lump sum amount, should you retire after Dec. 1, 2022," read the Ford memo, which also included a brief survey to help the company plan for employee retirements.

The warning – sent to employees in an email in September with the subject line "Important Information Regarding Your Pension" – specifically pointed out that anyone who is considering retiring and opting for a lump sum payment needs to look at the numbers.

Rising interest rates in 2022 will trigger a significant drop in the potential payout for those who choose the lump sum pension option next year.

More:

 
pmbug said:
Counterparty risk is never boring!
Click to expand...
No it is not.

Fortunately, we know what counterparty risk is, but there's a whole tranche of folks who will be 'educated' about it in the near future.
 
Do you know if this is related to the PBGC rate? Higher PBGC equals less lump sum for a traditional pension plan. That rate bottomed out at Zero, the absolute best it can get for pension lump sum payments, but has been moving up since last June. Of course, traditional pension plans are all but dead for hourly employees. Some of us had the opportunity to choose between a pension plan and the new variable cash plan about 20 years ago. I stuck with the traditional pension.
 
agcoacres said:
Do you know if this is related to the PBGC rate?
Click to expand...

Not sure but it could be. This is one of the links in the article:

Ford tells employees the score on how higher rates hit lump sum payouts

Most don't realize that higher interest rates influence the size of lump sum pension payouts and could drive some to retire this year instead of next.
www.freep.com

agcoacres said:
Of course, traditional pension plans are all but dead for hourly employees.
Click to expand...

Was an IAM member for many years. When I was in we had the traditional plan along with what we called a severance fund. The severance fund was basically a lump sum payment you got when you retired or left the union. The pension you got when you retired. They no longer have these. Now they have a 401K. Also gone are the good medical plans they had back then. Not sure but I think they have an HMO plan now.
 
Traditional Pension here. Can choose between lump sum and different annuity payment options. Also have a 401k. Company match has been anywhere 4-8%. Currently at 8.

All considered, feel pretty blessed.
 
New stuff on the horizon.

Big changes to the retirement system are included in Congress’s end-of-year bill​

Story by Ben Werschkul • Yesterday 1:25 PM

Tucked into the $1.7 trillion government spending bill for 2023 lawmakers unveiled Tuesday are a range of significant reforms to help Americans save more for retirement.

These include increasing the age for required minimum distributions from retirement plans to pushing businesses to get more employees enrolled in plans. The bill also includes ideas that may help younger people save more earlier in life.

The measures — which begin on page 2,046 of the massive 4,155-page bill — mean that long-delayed retirement reform legislation known as SECURE 2.0 is now likely on a path to becoming law as soon as this weekend and would start to address what is becoming a retirement savings crisis in the U.S.

More:

 

Should Seniors Work Until They Die? Debate Featuring Charles Sauer​

Jan 10, 2023

Should seniors be able to retire at 60 or should they have to work until they die? Thom Hartmann & Charles Sauer debate Social Security & retirement. 12:19
 

SECURE 2.0 Act of 2022: Overview, Rules, Limits

The SECURE 2.0 Act of 2022, part of the Consolidated Appropriations Act (CAA) of 2023, is legislation that contains 92 provisions aimed at strengthening retirement savings in important ways.
www.investopedia.com
 
searcher said:
Click to expand...
Done in an age of Rule of Law, those - private investment of the funds - would be a giant step forward.

We no longer live in such a world. We're Financialized, Crony-Corporatist and Woke. Bail-Ins are the New Thing.

Nonetheless, consider the source. Crypto-Marxist. They are the promoters of UBI and MMT.
 
 
Interestingly, it's mostly the freer societies (US, Canaduh excluded) that have higher retirement ages.

Norway having the highest "official" age.

I wonder (sarc) if there's a difference between "official" retirement age, and actual age, which is probably closer, in many places, to none/death.
 
On Feb. 13, Democratic Sen. Bernie Sanders (Vt.) formally reintroduced The Social Security Expansion Act to Congress, and this time, he had a lot more support from fellow lawmakers pushing the initiative.

As GOBankingRates previously reported, the Social Security Expansion Act was first introduced on June 9 by Sanders and U.S. Rep. Peter DeFazio (D-Ore.). Under terms of the bill, anyone who is a current Social Security recipient, or who will turn 62 in 2023, would receive an extra $200 in each monthly check. Meaning, Social Security recipients could get an additional $2,400 a year in benefits if the bill wins approval — something seniors would no doubt welcome as inflation wipes out their annual cost-of-living increases.

More:

 
... anyone who is a current Social Security recipient, or who will turn 62 in 2023 ...
Click to expand...

I was 17 years old and just a few months away from my birthday when Texas raised the drinking age limit from 18 to 21, so this kind of thing hits close to home. <pulls paper bag over head>
 
The U.S. Senate on Wednesday passed a measure to block retirement account managers from considering environmental, social, and corporate governance principles (ESG) when evaluating investments in retirement plans.

The joint resolution measure, approved in a 50-46 vote, aims to overturn a Labor Department rule that currently allows fiduciaries to consider those factors. But it's set to be blocked when it arrives at the White House in what would be President Biden’s first veto since taking office.


 
This one's an opinion piece.

Will The Rich Make You Work ‘Til You Die?​

Mar 3, 2023

No retirement for workers. The rich want you to work until you die. New plans would push the retirement age to at least 70. How many blue collar workers will survive that kind of economy? 7:03
 
Without a large middle class, there's not Economies of Scale in manufacturing many products...many types of products.

The former middle classes will work until they die, for little profit. And the ranks of the rich will also shrink...drastically.

And the hatred and divisiveness will grow.

It won't be the Utopia these midwits think it will be. I'd rather be right where I'm at, now, than a feudal prince...worried about an assassin breaking into my chambers in the middle of the night, to knife me and leave a political message.
 

House GOP Panel Releases Budget That Would 'Destroy Social Security as We Know It'​

Jun 15, 2023

A panel comprised of three-quarters of the House Republican caucus released a budget proposal on Wednesday that would raise the Social Security retirement age—cutting benefits across the board—while further privatizing Medicare and slashing taxes for the rich, a plan that Democratic lawmakers and progressive advocacy groups said is a clear statement of the GOP's warped priorities ahead of a critical spending fight this fall.

The proposal outlined by the 175-member Republican Study Committee (RSC), led by Rep. Kevin Hern (R-Okla.), would gradually raise Social Security's full retirement age—the age at which people are eligible for full Social Security benefits—to 69, up from the current level of 67 for those born in 1960 or later.

Nancy Altman, the president of Social Security Works, said the RSC budget would "destroy Social Security as we know it," using a "modest shortfall" that's more than a decade away to justify reducing benefits for millions.

"These changes would transform Social Security from an earned insurance benefit, which replaces wages lost in the event of old age, disability, or death, into a subsistence-level welfare benefit," said Altman, who noted that the RSC "rules out any options for raising revenue, such as requiring billionaires to contribute even a penny more."

Read the rest here:

House GOP Panel Releases Budget That Would 'Destroy Social Security as We Know It'

"The largest group of House Republicans just released a budget that calls for massive tax cuts for the super-rich and raising the Social Security retirement age, a benefit cut for millions of Americans."
www.commondreams.org
 

Republicans Release Plan to GUT Social Security​

Jun 15, 2023
17:35

A panel of Republican lawmakers have just released their newest plan to strip you of your social security and Medicare benefits. John Iadarola, Farron Cousins, and Mondale Robinson discuss on The Young Turks.
 
searcher said:
House GOP Panel Releases Budget That Would 'Destroy Social Security as We Know It'
Click to expand...
They say it like that's a bad thing.

So it's going to be transformed from a political cudgel, to a welfare program.

Which in fact it has been, all along, for 70 years.

I don't like this, but we all knew this day was coming. It's been obvious for 20 years, and LONGER if you factored in the innate nature of politicians...it was obvious, antiSocial inSecurity was destined to failure.

Along the way, it was to be used to gin up plenty of fear and plenty of clingy habitual votes for the Party of Chaos.

Now, the numbers can no longer be fudged. And anyway, the Left has a new way to create mass hysteria - with their FRIENDS in the WHO and CDC.
 

The best birthday present for Social Security: Increase its benefits​

On Aug. 14, 1935, President Franklin D. Roosevelt signed Social Security into law. Eighty-eight years later, our Social Security system is among the most successful and popular government programs in history.

Nearly every worker pays premiums (Federal Insurance Contributions or FICA) for Social Security. In return, they receive insurance benefits when they retire, become disabled or lose a family breadwinner.

Social Security is secure, efficient and the most important source of retirement income for the vast majority of Americans. Social Security does have one major flaw, though: Its benefits are too low.

The average Social Security benefit is only $1,700 a month — considerably lower than in peer nations. That is not enough for working families to enjoy a secure retirement or make ends meet when tragedy strikes in the form of serious and permanent disabilities or death.

It’s not surprising that our nation is facing a retirement income crisis. Too many Americans fear that they must work until they die, because they will not be able to retire without a drastic decline in their standard of living. The solution is to expand Social Security.

More:

 
nickndfl said:
In a couple of years I will be of retirement age and vote for everything free for me. I been paying taxes for almost 50 years. It's about time I got some reparations of my own!
Click to expand...

I retired very early....paid LOTS of income taxes and max SS tax for years.....now i take advantage of every program i can find .....control my income....but i still vote against the nanny state....... i figure i paid in so much i need to get at least something back outa it weather i need it or not .... yep after dealing with government for years and working my arse off i need reparations too .....guess i screwed up getting both my kids thru school with no debt too
 
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