If you are in a Union Pension, this is a must read

Unions and Democrats are scared. They should be.

Very soon, Democrats and their union bosses’ worst fears may soon be realized and, if they cannot continue their slight of hand, it may threaten their very existence. While it is true that Democrats and their union bosses are facing possibly debilitating losses on November 2nd, they are hiding the really bad news from voters until after November 2nd.

Do you remember that promise we heard back in 2008 about transparency? Democrats and, in particular, then-candidate Barack Obama stated emphatically that “transparency and the rule of law will be the touchstones of this presidency.” What a joke that was. Well, it’s time to shed some light on the house of cards that is about to come crashing down on Democrats’ and union bosses’ heads.

“This is Armageddon.”

In June, a conversation took place in a hotel restaurant in Washington. As a latecomer to the conversation, it was easy to pick up that the topic that was the $165 billion union pension bailout bill introduced by Sen. Bob Casey [D-PA] in March.

Upon introductions, one of the individuals stated, “this is Armageddon.”

When asked for clarification, the person explained about the accounting rules developed to shore up underfunded union pensions and the dates when those union companies affected would have to assume their liabilities had the DC crowd (in particular, the Democrats and the unions) in a panic.

Yesterday, the Washington Examiner’s Mark Hemingway gave a good breakdown of how bad it could get for Democrats and their union bosses:

On Nov. 1, the Financial Accounting Standards Board (FASB) ceases to take public comment on a new rule requiring that companies more accurately report liabilities they have from participation in multiemployer pension plans. Unless FASB is persuaded otherwise, the rule takes effect Dec. 15.

There are some 1,500 multiemployer pension plans in the United States, which are unique to unions. In these plans, multiple companies pay into the pension plan, but each company assumes the total liability.

Under “last man standing” accounting rules, if five companies are in a plan and four go bankrupt, the fifth company is responsible for meeting the pension obligations for the employees of the other four companies.

What this means is that companies with union labor often have pension liabilities that are several multiples higher than the pension expenditures they report — the Kroger grocery store chain shocked analysts last year when it disclosed its multiemployer pension liabilities more than doubled in a year to $1.2 billion.

FASB’s new rule could effectively wipe out the paper worth of many companies, especially in the trucking and construction industries. Once banks and creditors are aware of these staggering pension liabilities, it will make it nearly impossible for union businesses to get loans, credit lines or bonding.p

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Great read RT, wow...unions are in trouble, and obama will not be able to do a thing but watch!

Great article RT! Most people have no clue that has been and is going on.

rofllol Panic just set in in upper burland.

You guys don't understand how it works...Unions don't usually fund or pay pensions. Companies do, unions negotiate them, it's a contract, and everytime a union member gets a paycheck from the company, the company HAS TO put some money is into a pension fund/account for the employee. My account is huge and growing daily. I can't wait to start drawing from it when i'm 55.

VL, a huge pension from McDonalds flipping burgers??? OK..

Vice Lord wrote: You guys don't understand how it works...Unions don't usually fund or pay pensions. Companies do, unions negotiate them, it's a contract, and everytime a union member gets a paycheck from the company, the company HAS TO put some money is into a pension fund/account for the employee. My account is huge and growing daily. I can't wait to start drawing from it when i'm 55.

VL,
Your facade has collapsed. I'm very familiar with union pensions....if you really believe you will get more than 30 cents on the dollar of what your union promised, you are ignorant. Do more research....I have.

Vice Lord wrote: You guys don't understand how it works...Unions don't usually fund or pay pensions. Companies do, unions negotiate them, it's a contract, and everytime a union member gets a paycheck from the company, the company HAS TO put some money is into a pension fund/account for the employee. My account is huge and growing daily. I can't wait to start drawing from it when i'm 55.

Companies pay the pension to trusts managed by Unions. Nuff said?

residenttroll wrote:

Vice Lord wrote: You guys don't understand how it works...Unions don't usually fund or pay pensions. Companies do, unions negotiate them, it's a contract, and everytime a union member gets a paycheck from the company, the company HAS TO put some money is into a pension fund/account for the employee. My account is huge and growing daily. I can't wait to start drawing from it when i'm 55.

Companies pay the pension to trusts managed by Unions. Nuff said?

You don't know what you are talking about...Every contract is different..Some have the company match money going into a 401k, some union employees get stock, sometimes money goes into a fund the company administers, sometimes money go's to a fund that the union controls..Mine was with the company, I got Stock, and I have a pension from the union itself...

RenegadeCJ wrote:

Vice Lord wrote: You guys don't understand how it works...Unions don't usually fund or pay pensions. Companies do, unions negotiate them, it's a contract, and everytime a union member gets a paycheck from the company, the company HAS TO put some money is into a pension fund/account for the employee. My account is huge and growing daily. I can't wait to start drawing from it when i'm 55.

VL,
Your facade has collapsed. I'm very familiar with union pensions....if you really believe you will get more than 30 cents on the dollar of what your union promised, you are ignorant. Do more research....I have.

Oh I should do some research huh? ....All my friends are living on union negotiated pensions..My father is living on a union pension and i'm gettin close to..It's a defined amount..Its there, nobody can take it from me, the money is insured as well...I'm living it!

Research?