Underfunded pension plans

Bubbling up all over the web is the problem of underfunded pension plans and the effect they are having on the states. You can see the problems everywhere, particularly close to home in Toledo and Detroit, with workers rejecting plans to cut back or increase worker liability even in the face of massive defaults and shortages. Here is a rundown of some of the underfunded pension plans and the White House's subsequent behavior determined by that underfunding. What it boils down to is that workers who are not in unions will not be protected and eventually will be forced into unions, which will increase the costs of EVERYTHING in this country. Then, we can be like Europe, where a pizza costs 30 bucks, with the 16 year old pizza worker's 30 day vacation is figured into the cost. Read it here.

According to the Pension Protection Act of 2006 multi-employer (plans set through unions and company sponsors) plans are evaluated via their funding levels. To ensure retiree benefits are protected, when a multiemployer plan falls below certain funding levels, stronger funding requirements become effective under provisions of the Pension Protection Act of 2006. Plans whose funding levels are below 80% are referred to as “endangered,” while those below 65% are referred to as “critical.”