Companies Ask Congress for Pension Relief

either way

either way we may be looking at no growth over the next 5-10 yrs

of @ Nov 25, 2008 20:45:48 PM

Pensions

The Congress should provide pension contribution relief when the economy suffers a severe recessionary shock and interest rates decline precipitously. The combination of declining cash flow, significant equity asset price declines and unusually low interest rates dramatically understate the future value of the defined benefits portfolio and balloon the contributions necessary to satisfy pension funding targets.

However the pension problem is a symptom of a larger issue. Most defined benefit (pension and healthcare) companies affected are industrial/ manufacturing companies. Since the 1960s foreign countries which provide healthcare and pensions to their citizens have been able to export to the US using these advantages to undercut their US competitors.Furthermore many of the nations exporting to the US have very lax environmental standards another cost advantage over US producers. Lastly, foreign governments have deliberately manipulated their currencies value versus the US dollar to maintain or increase sales in the US. Consequently our domestic producers stuggle to maintain US market share and have no chance at competing in export markets. The result has been enormous trade and current account deficits in the US. Since 2000 the US has lost 4.3 million manufacturing jobs. Meanwhile our Treasury Secretaries since 1992 have turned a blind eye to our trading partners currency abuses. If we do not reverse these "free trade abuses" and require countries running massive trade surpluses to develop domestic demand for goods and services, including imports from the US, our economy will shrink; many of these industries with pension and healthcare obligations will fail and/ or move jobs overseas or both and our foreign partners economies will contract as US consumption falls in concert with declining consumer incomes. I believe this process has begun.

William Steele of OH @ Nov 24, 2008 23:41:49 PM

Pensions

During the working years it was explained clearly that the earned compensation consisted of the dollars you took home and those deferred until retirement. Now it is all explained that it was all a hoax; and the deferred retirement benefits were really only provided by the goodness and the altruistic benevolence of the companies’. The compensation earned by working, loyalty, and dedication for future retirement has been squandered in mismanagement and egregious compensation packages for top executive positions. Now these companies wish to end all pension responsibilities. The pension compensation was earned and should be funded and paid to the employees’ who earned them!

James Barker of IL @ Nov 17, 2008 01:58:36 AM

WHAT'S NEXT!

I don't know if this is necessary or not but the best way to succeed in life is to identify work you enjoy which enables you to be happy and be with your family anyway. We all deserve that. www.LikeSoup.com

Jim Campbell of CA @ Nov 13, 2008 15:07:52 PM