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Another Huge Bailout

May 28, 2010

For years I have said no one in America will have a pension in 10 years

unless you are a U S Senator or Congressman.

Now you know.

THE NEXT BAILOUT? Union pensions may be the next crisis – and the next bailout, as John McKinnon reports in The Wall Street Journal: U.S. lawmakers are laying the groundwork for a possible federal bailout of some faltering pension plans that are jointly run by companies and unions. The effort reflects a worrisome new problem in the nation’s troubled retirement-savings system: the grim financial condition of such pension plans, known as multi-employer plans. They are common in the hotel, construction, trucking and other industries, and cover about 10 million workers, or almost one in four workers who have a private pension.

‘Many multi-employer plans are struggling after years of financial hits and relatively light regulation. In the past two years, almost 400 plans have announced they are in bad condition, according to lawmakers. In response, some lawmakers are pushing a plan that would provide federal aid to a few of the ailing pension funds. But some conservatives and anti-union groups oppose the aid effort, arguing it could lead to a broader taxpayer bailout of the whole class of pensions, costing tens of billions of dollars.’ http://bit.ly/aHBBPH

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