Another Pension Plan Bites the Dust
According to the
New York Times ,
there is a man named Robert Miller who appears to be in the business of
buying up companies and jetisonning their pension funds, leaving the
would-be pensioners to rely on government guarantees to supply their
retirement pensions. This may sound like the actions of a Dickens'
villain, but it appears to be fast becoming a standard practice. The
companies mentioned include Delphi, a spun-off subsidiary of General
Motors, which is presently facing severe economic troubles, and
potential chapter 11 Bankruptcy. The reasonable concern here is that
all the companies are doing is shifting the balance of the pension
requirements onto the taxpayers, making the companies suddenly more
valuable, but placing a further burden both on the government who has
to pay out these defaulted pensions, and the pensioners themselves, who
may face a loss of benefits as a result.
Something to watch out for if you plan on living on a pension....