The next BOHICA – save underfunded pensions

BOHICA – Bend Over Here It Comes Again.

As the Climategate story continues to impact public opinion (worldwide – more here), it’s probably a good bet that Cap & Tax legislation is dead – at least for now. Congress and our dear comrade leader are not, however, done with economy killing wealth redistribution policy. This article (from the Daily Caller) describes the next BOHICA from our government.

Legislation introduced last week could shift costs of union pension plans to taxpayers in an attempt to stave off organized labor’s pension funding crisis.

Senator Bob Casey, Pennsylvania Democrat, introduced the Create Jobs & Save Benefits Act of 2010 to address the funding problems faced by union-administered multi-employer pension plans.

Multi-employer pension plans have to cover the benefits of members, even if their companies are defunct. Currently the costs are shared among the companies that remain in the pool, but Casey’s bill proposes offloading them to the Pension Benefit Guarantee Corporation (PBGC), a federal corporation, which backs the pensions of 44 million workers, more than 75 percent of which are nonunion.

Of course unions are fully supporting taxpayer funding of their pensions.

“It’s been quite clear to us, and to many people following this issue, that there is a real urgency driving big labor’s push for EFCA (Employee Free Choice Act) — it’s nakedly designed to improve labor’s ability to add people to its rolls,” said Mark McKinnon, spokesman for Workforce Fairness Institute. “It’s not good for business or the economy, but it’s clearly good for labor.”

“This is their No. 1 agenda item … and the pension fund problem is driving the urgency. Because their pension funds are significantly underfunded and they’re going broke, EFCA is the quickest fix they can get.”

Union pension plans suffer from the same aging demographic problem as social security suffers.

Before the economic downtown, when the latest pension data were available, 17 percent of labor pensions were fully funded, compared to 35 percent in the non-union sector. More interestingly, pension funds of union staff and officers are well-funded — in the 90-plus percent range — while the funds of labor’s rank and file suffer.

BOHICA – the hits just keep on coming.

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