Reduction of pension plans by employers; the “crisis” in social security and attempted remedies through privatization of retirement systems

HEADLINES

3/25/10

IS U.S. SOCIAL SECURITY SYSTEM FACING A SOLVENCY PROBLEM? WELL... This year the system reaches a "tipping point" in which more will by paid out in benefits than is collected through tax revenues, as the latter have not realized the benefit of a "recovered" economy as much as administrators had expected. This need not, however, be an indication of looming insolvency, as the system has built up a $2.5 trillion "trust fund" of collections in excess of distributions over the years, in anticipation of the huge increase in payouts associated with retirement of "baby boomers." This fund, even under conditions of severe revenue declines, would not be depleted "for decades." (Not, that is, if the federal government keeps its deficit-reducing hands off the temptation to "raid" the fund for overall budget-balancing purposes.)

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1/26/07

De-privatization in Argentina: those who chose privately-operated retirement funds will, for the first time since 1994, be able to switch to government-operated fund.

http://www.buenosairesherald.com/argentina/note.jsp?idContent=351218&hideIntro=true

1/11/07

Large increase in number of Greek workers who opt for early retirement reflects the instability of the social security system and a fear that it will fail before workers reach normal retirement age.

http://www.athensnews.gr/athweb/nathens.prnt_article?e=C&f=13216&t=01&m=A05&aa=1  

4/11/06

Retirees who move to Panama find the living easy and health care good and inexpensive:  http://www.nytimes.com/2006/04/11/business/retirement/11panama.html  

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3/25/10

IS U.S. SOCIAL SECURITY SYSTEM FACING A SOLVENCY PROBLEM? WELL... This year the system reaches a "tipping point" in which more will by paid out in benefits than is collected through tax revenues, as the latter have not realized the benefit of a "recovered" economy as much as administrators had expected. This need not, however, be an indication of looming insolvency, as the system has built up a $2.5 trillion "trust fund" of collections in excess of distributions over the years, in anticipation of the huge increase in payouts associated with retirement of "baby boomers." This fund, even under conditions of severe revenue declines, would not be depleted "for decades." (Not, that is, if the federal government keeps its deficit-reducing hands off the temptation to "raid" the fund for overall budget-balancing purposes.)

ON TRUST FUND RAIDING:

3/9/10

GRANDPA IS TAKING HIS PENSION MONEY TO LAS VEGAS TO PLAY DOUBLE OR NOTHING. Actually, according to an article in the New York Times, U.S. states are so playing "Grandpa's" money, resorting to more risky investments by their pension funds to try to make up for losses sustained in earlier investments in a real estate bubble which is now broken. The "nothing" of a deflated bubble may be as serious as the much-toted shortfall in Social Security funds as the "baby boomers" come of retirement age

2/10/10

OBAMA'S "BI-PARTISAN DEFICIT-REDUCTION COMMISSION" WILL BE A STEALTH CAMPAIGN TO DESTROY SOCIAL SECURITY AND MEDI-CARE. This is the view of labor activist Shamus Cooke, quoting a New York Times op-ed piece that signals the intention of reducing the national budget deficit by mass reductions in social security and Medicare benefits as the Commission is expected to provide "political cover" for a very unpopular procedure. So far only the labor unions have offered any major public complaint about this plan, as the "progressive" community generally has remained silent.

5/14/09

Myth of Social in-Security rears its ugly head again:.  Once again, alarm bells are sounded about alleged effects of aging and retirement of the baby boomer generation: that both Social Security and Medicaid funds will be insolvent in a decreasing number of years.  Robert Reich, former Secretary of Labor, considers these alarms as propaqanda.  Social security insolvency is predicated on stagnant economic growh projections that may be unduly pessimistic and which will largely be staved off by robust populations of immigrants in the working ages.  Medicaid's solvency problem is more serious but can be fixed by medical cost containmnent efforts in the current round of "health care reform."

http://www.alternet.org/mediaculture/140003/baby_boomer_alert%3A_the_truth_behind_social_security_propaganda/

2/17/09

Is there a plan to "loot" Social Security funds to pay for bailouts and stimulus grants?:   William Greider thinks so, based on indications that both the White House and congressional leaders are engaged in closed-door planning to finance these schemes by raiding Social Security funds in the name of "fiscal responsibility," as they make "entitlements" the focus of budget-cutting efforts.  These are, of course, the very funds on which workers depend for their retirement security.  Former Comptroller General David Walker takes exception to Greider's analysis, but Greider finds in Walker's critique an actual affirmation of his "looting" analysis.

http://www.thenation.com/doc/20090302/greider?rel=hp_currently

1/14/09

As Barack Obama assumes  U.S. presidency, he gives evidence of an intention to put into public policy his expressed liking for the conservative former GOP President.  Specifically, his call for fiscal  conservatism in the area of "entitlements" contrasts with his profligate spending plans when it comes to defense spending or "rescue" for investment firms.  This takes the form most acutely in his Reaganesque warning about the "insolvency" of Social Security funds and the necessity to curb those "entitlements."

http://www.blackagendareport.com/index.php?option=com_content&task=view&id=971&Itemid=1

11/1/08

Retirement decisions are getting tougher for some Seattle couples.

http://seattletimes.nwsource.com/html/nationworld/2008337772_retirees01m.html  

10/17/08

Retirement security in U.S. declines as retirement funds invested in stock market have suffered heavy losses and many older workers no longer put money in 401 k's.

http://www.csmonitor.com/2008/1017/p01s06-usec.html

10/10/08

People in Utah and elsewhere are delaying plans for retirement pending improvements in values in stock market, in which many of their retirement funds are invested.

http://www.deseretnews.com/article/1,5143,700265392,00.html  

6/23/08

This presidential campaign season, some kids are playing on the third rail of U.S. politics:.  Conservatives are exploiting the tendency of young voters to be less supportive than their elders of maintaining the Social Security program in favor of "privatizing" schemes dear to the conservative heart.  Some organizations of "youth activists" are promoting  this tendency in conferences in which their members are subjected to the economic views of notable privatizers.

http://www.thenation.com/blogs/passingthrough/329655  

4/10/08

Only 18% of American workers say they are "confident" that they will have enough money to sustain their needs when they retire.

http://www.washingtonpost.com/wp-dyn/content/article/2008/04/09/AR2008040903900.html?wpisrc=newsletter  

4/4/07

Endangered species: New Jersey teachers' pensions:  New York Times investigative report details years of accounting irregularities by the state in which billions of dollars have been diverted from pension fund to other fiscal needs, creating a perilous situation for the state's retirement fund.

http://www.nytimes.com/2007/04/04/nyregion/04pension.html?pagewanted=1&_r=1&hp  

2/15/07

Massachusetts Governor proposes that the state's towns and cities pay a price for the financial relief packages being offered: that those with "under-performing" retirement systems turn their retirement funds for state administration.

http://www.boston.com/news/local/massachusetts/articles/2007/02/15/patrick_targets_pension_systems/  

1/22/07

If it ain't broke, try to "fix" it:  New Democratic chairman of Senate Budget Committee, Kent Conrad,  will join outgoing chairman Judd Greg in seeking to "reform" Social Security which is actuarially sound for many years.  Sacramento activist suggests that this "bi-partisan" move will fulfill Wall Street's goal to turn social security over to the mutual fund industry; and that a full 1/5 of all Conrad's campaign contributions come from the finance, insurance and real estate industries.

http://counterpunch.org/sandronsky01202007.html  

11/6/06

Across the U.S., state and local governments are reducing their pension payments to retired and disabled public employees, as a way to deal with their budget problems.

http://www.nytimes.com/2006/11/06/business/06pension.html?th&emc=th

6/7/06

Massachusetts has a retirement pension system that is easily "gained," as by a public employee who retired on $140,000 yearly pension by having worked two jobs "full time" by frequently calling in sick on each job.  http://www.boston.com/business/personalfinance/articles/2006/06/07/putting_a_face_on_the_need_to_reform/  

4/14/06

As Congress finalizes "pension reform" legislation, critics argue that the law will further jeopardize retirement security by encouraging employers to opt out of the system:  http://newstandardnews.net/content/index.cfm/items/3052/continued/369#continued

4/11/06

A novel approach to retirement security: a few young workers (but not many) are actually saving for retirement: http://www.nytimes.com/2006/04/11/business/retirement/11savings.html

3/22/06

Automakers must erode workers' faith in the security of the retirement benefits of their jobs to entice them to accept early retirement buyouts: http://www.nytimes.com/2006/03/22/automobiles/22auto.html?th&emc=th

3/21/06

UPS uses its political clout to press Congress for reduction in employee retirement benefits: http://www.commondreams.org/headlines06/0320-09.htm

3/19/06

Loopholes in plans for protection of private pension funds allow companies to evade responsibility for their employees' retirement funds: http://www.nytimes.com/2006/03/19/business/19pension.html?_r=1&th&emc=th&oref=slogin

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10/16/09

South Florida seniors having to scrimp on their expenditures as they face freeze in annual cost of living increases from Social Security.

3/16/09

Florida may be losing out to Arizona in attractiveness to new retirees because they offer more "amenities" for the elderly.

http://www.heraldtribune.com/article/20090316/ARTICLE/903160994/2055/NEWS?Title=Arizona-a-fresher-Florida-

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5/15/08

Demography is destiny in Gainesville as Santa Fe Community College recognizes the booming population of "baby boomers" in the area and plans for programs designed to attract students from that demographic.

http://www.gainesville.com/article/20080515/NEWS/805150351/1002/NEWS/SFCC__others_to_target_education_of_baby_boomers_in_grant

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