Pensions Under Attack

    As we've discussed here for many months, the pension system in the country is under attack. Either by running into bankruptcy or converting defined benefit plans to take-a-gamble 401(k)'s or demanding pension givebacks in contract negotiations (as was the case in the NYC transit strike), employers are dismantling the pension system. The message today is that no one should look forward to a retirement with dignity and a measure of security.

    The New York Times' Steve Greenhouse looks at the problem in light of the transit strike. The piece is okay in terms of highlighting that there is a battle. But, the article makes no mention, with the exception of a fragement of a quote from a union leader, that the attack on pensions is part of the general societal trend towards a divide between rich and poor.

    The truth is that this is the richest country on earth. It has the ability to provide everyone with real health care and a decent pension. But, the article takes no time to delve into either the vast riches, in pay and pension, being accumulated by corporate executives, nor the draining of public coffers through a combination of tax cuts for the rich and tax benefits to large corporations,  particularly those benefits extended by local and state governments who feel the need to give out billions of dollars in tax cuts to corporations to keep jobs.

    [Publication note: probably no post on X-mas day, not because I celebrate but likely few readers will notice. We'll see what happens this coming week--maybe take some time to rest the brain or maybe just post as events warrant]

Comments

[Karl Hildenbrand]

Agreed. That's what it's all about. More fear for personal retirement security adds to the level of insecurity and mistrust about eveything around us. Paranoia ensues. Feelings of political and social impotence are magnified. Keep our chins up!! There's strength in numbers. Karl

[James Burns]

I agree that the New York Times article doesn't take enough factors into account. These are highly complicated matters and there are too many people trying to oversimplify them. There's a great free site with tons of informational links, articles, and videos called AtPrime.com. It's run by an expert pension actuary and it examines Pension issues from all angles. I cannot reccomend it enough.

[JBB]

Everyone ought to be more conscious of the bankruptcy facing municipal goverment pension plans in many states, school districts, etc. Take a look at my 9/24/2006 post at jamesbburnham.typepad.com.