http://www.usatoday.com/money/companies/regulation/2006-08-17-pension-overhaul_x.htm
Bush signs massive pension overhaul
Updated 8/17/2006 1:51 PM ET
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With its hundreds of pages, the bill seeks to strengthen traditional defined-benefit plans and requires companies to tell workers more about the health of their pension programs. It also nudges workers into putting more money away for their own retirement.
It aims to boost the 30,000 defined-benefit plans run by employers that are now underfunded by an estimated $450 billion. Those plans must reach 100% funding, up from the current 90% requirement, in seven years.
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Hey sounds good right?
Now let’s look behind the curtain.
Defense contractors, exception. Two big airlines, big exception. Shortfallers get 7 years to catch up (or go bankrupt!). A little pork project to make it palatable and worthwhile for one representative to vote for it! Automatic 401k enrollments because your too stupid to make your own decisions. And, plans with over 120% funding can fund retiree healthcare (a little relief to Medicare?).
Whatta bunch of Barbara Streisand!
This is about helping out their friends in the Airline industry, Defense Contractors, and making sure that the federal Pension Guarantee doesn’t have to pay out too much.
It’s not about rectifying the mistake made in WW2 when the Federal Government winked so that Companies could pay more than the government’s published wage and price controls allowed. We’ve been paying for that mistake ever since.
Here’s a novel idea. Let people make their own decisions.
Pension plans should be “spun out”. Take the assets and divide it among the recipients. Allow them to decide what to do next. I am sure that the Insurance Companies, Stockbrokers, and Mutual Funds can help them with plans that they won’t have to worry about.
(Look up a Vangard Guaranteed Annuity, and see how little one has to pay in fees for that! Then see how everyone is being ripped off by the collusion of the politicians and the companies.)
Bet the airline pilots would have like to have that before those tow special airlines welshed on them!
Unintended consequences.
When the government “protects” me from something, why should I be afraid? I should just be terrified!
Reinke Faces Life 
http://money.cnn.com/2006/08/28/news/companies/dupont.reut/index.htm?section=money_latest
DuPont to cut pension contributions by two-thirds
In exchange, chemical company to increase employee savings and investment programs.
August 28 2006: 12:18 PM EDT
It didn’t take long for the other shoe to drop! The old IBM employees lost and then lost in court. SO now we all lose! Arghhh!
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