Pension Plans will be a thing of the past

[bozack]

why is this bad again?

 

[mugs]

.

 

[soccerballtux]

I'd rather have my money up front than in some pension plan of the future. Who knows if the company will still be around then?

 

[Bateluer]

Originally posted by: soccerballtux
I'd rather have my money up front than in some pension plan of the future. Who knows if the company will still be around then?

I'm all for privatized pension, privatized social security, etc, but the fact is, most people will not save the money if left to their own devices. They will spend that extra money in their pay checks on impulse items and beer. People still need to be 'convinced' to max out their IRA contributions every year.

 

[miketheidiot]

Originally posted by: ericlp
I'll start clapping when they get rid of the death tax but it's a start.

death tax never existed. there is a for of the gift tax called the inheritance tax though.

 

[Fern]

Originally posted by: SandEagle
Pension Plans will be a thing of the past

Bush signed legislation Tuesday that frees businesses from having to pump billions into pension plans

Originally posted by: SandEagle
not sure if this was posted, but this is big. pretty soon, we're going to be working til we drop... sad indeed

"The measure enacted Tuesday also suspends for 2009 a requirement that people 70 1/2 and older must withdraw a minimum amount from their retirement plans or IRAs. Those who do not are subject to a 50 percent penalty on the amount that should have been withdrawn."

Sorry, but you have completely misunderstood this and have it all wrong.

The consequence of NOT passing this new law would have been the elimination of pension plans ("PPs") and /or companies going bankrupt (again, another form of "elimination" of PPs too). So, the point of this new law is to SAVE PPs (and companies/employers).

Here's the really big problem this law addresses -

Traditional PPs (Defined Benefit Plans) are required to be fully funded. Those funds are typically held in stock accounts. When the stock market goes down, the value of the funds appears much smaller. When that happens companies are required to increase the current year's contribution to the fund so as to increase it to it's previous level. I.e., they would have to contribute funds at least equal to their loses in the stock market. Given how far the market has fallen this would likely be impossible (particularly under current economic conditions). So, without this new law companies would have two choices: Kill the PPs or go bankrupt.

Because of the above, the volatility of the stock market and a few other things, Traditional (Defined benefit) PPs are no longer popular and most companies no longer offer them. The ones that do are usually union-type companies. I.e., here's another *bone* to the unions. It's a Dem bill sponsored by Charles Rangel of the Ways & Means committee..

Fern

 

[extra]

Uhh, fear mongering headline lol. It's a temporary measure for 2009 only and there are things in it that benefit everyone, it's kind of a common sense bill really.

 

[LegendKiller]

Originally posted by: ericlp
I'll start clapping when they get rid of the death tax but it's a start.

How aristocratic of you. Tell me, did your lips even move when the rich puppet masters that manipulate you into thinking that's a good idea spoke?

The aristocracy tax is a very good idea, one that affects very few families that are very wealthy, but benefits society greatly. The idea that it hurts anybody but the super wealthy is ridiculous and is only a popular notion because of the publicity campaign they ran to get you to think that.

Without the aristocracy tax we'd have a plutocracy within 2-3 generations. The fact that your mind can be bought just as easily as they buy lobbyists who try to buy senators speaks volumes of your inability to comprehend that their only interest is to create a plutocracy.

What's even funnier is that it's very likely you'd never even be significantly touched by the aristocracy tax, yet you fight so strongly against it. It's like watching a cow moo after a cattle prod is shoved up its ass while on the way to the slaughterhouse.

 

[daveymark]

Originally posted by: BarneyFife

Originally posted by: Jeff7
And yet the poor will continue voting Republican.

"Look at us, we're cutting your taxes! Here's a little somethin'-somethin'. Now bend over while we screw you good. Don't worry, you won't feel the burn for another 30 years."

My favorite is when the typical family saves $40 a year and now they don't have any money to salt and plow the snow off the streets. Good luck getting to work now.

wow, talk about a slippery slope/straw man - but I'll go with it:

yet there is plenty of gubment money for people like pelosi to fly in their private jet. how bout she flies commercial so we can have our streets plowed?

 

[CPA]

Originally posted by: Wheezer

Originally posted by: Jeff7
And yet the poor will continue voting Republican.

"Look at us, we're cutting your taxes! Here's a little somethin'-somethin'. Now bend over while we screw you good. Don't worry, you won't feel the burn for another 30 years."

yeah...and yet the bill was sponsored by 4 people.....2 were Democrats and it got through the house...which, correct me if I am wrong, but is that not controlled by the Democrats also?

but your right...it all the republicans fault.


By the way, here is the bill in case you would like to read it in its entirety.

Kinda convenient that the OP leaves the Democratic Congress out of his fearmongering Topic title. Now, after reading the commonsense responses he probably wishes he didn't inadvertantly give Bush credit.

 

[piasabird]

I would not trust a union or a company with a pension.

I dont know what a pension is.

Only kind of pension or retirement system I have seen lately is one the employee pays into. If you are lucky the company will match the funds after the employee has worked a set number of years. So most of the retirement funds I have seen are Employee funded.

At least when you are paying into a plan the money is still yours.

 

[Jhhnn]

Originally posted by: piasabird
I would not trust a union or a company with a pension.

I dont know what a pension is.

Only kind of pension or retirement system I have seen lately is one the employee pays into. If you are lucky the company will match the funds after the employee has worked a set number of years. So most of the retirement funds I have seen are Employee funded.

At least when you are paying into a plan the money is still yours.

Yeh- and then your money is invested through your 401 K plan in various mutual funds who "invest" in stocks, bonds, and other financial instruments, like derivatives. When the market goes to hell, so does your money. So, yeh, it's still your money, what's left of it... Actively managing your own pension is something few people have the wherewithall to do in a fashion that will yield satisfactory results...