Thread: UNION PENSION FUNDS, THE STATES, AND FINANCIAL RUIN

UNION PENSION FUNDS, THE STATES, AND FINANCIAL RUIN

By: Devvy
July 13, 2010
© 2010 - NewsWithViews.com

Back on December 15, 2008, I did a column titled, UAW President: Rob the People's bank! That brought a deluge of email from members of the UAW who emphatically stated I was a selfish b*tch, that I knew nothing about unions and without a union, workers in the auto industry would be exploited. My column was about the flat out illegal bail out of the auto makers and how free trade has killed our most important job sectors. Yet, the victims of "free" trade continue to vote the same incumbents back into office who destroyed millions of jobs and who now refuse to get H.R. 4759 passed. Get the U.S. out of NAFTA and bring home millions of jobs. I wrote about this critical bill back on March 20, 2010. There are still only 30 sponsors; two Republicans. Neither the Republicans or the Democrats in the Outlaw Congress care about the American worker. Their votes have killed our economy; the so-called financial reform bill was nothing but more smoke and mirrors.

The Democrats have had control of Congress since January 2007. They have done nothing to bring home millions of jobs by getting the U.S. out of NAFTA, CAFTA, GATT, the WTO, stop the withholding taxing scheme, demand enforcement of our immigration laws and deporting as many illegal aliens as possible. Instead, Democrats in Congress champion illegals who have stolen MILLIONS of jobs that belong to Americans of both parties. Now, unions are going to spend a massive amount of money to return the same incumbents back to Congress to continue destroying this republic:

May 21, 2010. Unions to spend $100 million to save Dem majorities

Below is the mindset of the dummies coming out of the government indoctrination centers (public schools) that have inculcated the deadly communitarian doctrine (communist morality) into their heads that has led tens of millions of Americans to believe that federal government should be their caretaker throughout life. If you don't understand collectivism v individualism, it is terribly important you take the time to learn. You can listen from a master of knowledge on the issue, G. Edward Griffin. Interview from my radio show; click here for June 9, 2010 show.

"Individual wealth is evil. Collective wealth is the only virtue, social justice is the destination and Barack is the shepherd leading us down that path. We must remove the barriers to equality created by capitalism and embrace the righteousness of socialism." (Source, see comments section at bottom of article).

Slick career politicians like John Boehner [R-OH] can continue belching about jobs, but his votes killed millions of jobs. He is not a sponsor of H.R. 4759 to get US out of NAFTA. Boehner, like most Republicans and Democrats use political currency to bash the other party while Americans sink further into despair and poverty. If Democrats think it's all the fault of Bush and Republicans, they are fools. The same goes for Republicans who blame everything on Democrats. Both parties have brought this nation to financial ruin. There are hundreds of thousands of hard working Americans from both parties working feverishly to get the same buzzards reelected in November who have loaded the gun and pulled the trigger on our economy and our children and grand children's future. It is pure insanity.

Last year, a very knowledgeable man named Fred Starkey wrote two columns that really shook people up:

June 3, 2009. PERS: The Greatest Swindle in American History

June 19, 2009. Financial Rape: PERS of Oregon

After I read them, I brought Fred onto my radio show because pension short falls were just starting to get the long over due attention necessary to inform the American people of the dire condition of those funds. Millions of Americans depend on their retirement funds and like so many other columns I write, this one is going to give you the raw truth. Knowing the facts can help you make important decisions for you and your family. Hopefully, it will also encourage voters in November to throw out incumbents in your state legislature who have created another financial disaster that is going to badly hurt millions of Americans in the states of the Union. There are many good state legislators, but the incompetent fools from both parties out number those legislators who do know the solutions, but can't get bills passed.

Congress has NO authority to steal the fruits of your labor, my sister's, your brother or mother to bail out state pension funds because your state representative and senator have entered into long term binding agreements with unions that were never realistic --- especially in the event the economy takes a down turn. If only "down turn" were the bottom line, but tragically, the American people haven't seen anything yet. Do not send me hate mail for being the messenger. Read the facts, understand the issue and then decide how all this is/will affect you and your family. You can decide whether all these unions are good for your state. If you are a member of a union, whether UAW, SEIU or at the state level, perhaps there's something here for you to think about, too.

Too many Americans are paying little or zero attention to what's happened in Greece, Italy, Spain and other socialist countries. Many don't realize Greece has unions and now that decades of bloated government spending (like the U.S.) and massive "entitlements" have driven Greece into financial ruin, there's no more money to pay the bills, just like here in American both at the federal and state levels. The rioting has been going on for months over there and if you think it's not possible here, think again.

Who pays the taxes for these union workers?

June 23, 2010. New York. "Man Earns $300,000 Public Pension. One of the critical problems facing the state and local governments are pension funds that are way under funded. Fox 5 News first reported on James Hunderfund in May. The retired superintendent of the Commack School System on Long Island earns a pension of about $316,000 a year. On top of that, Hunderfund is now the superintendent of the Malverne School District. Fox 5 obtained his contract, which shows he makes about $225,000 annually plus he gets 18 paid sick days and 23 paid vacation days a year. His wife is the superintendent of the Locust Valley Central School District on Long Island. Her contract shows she makes $250,000 a year. When she retires she'll get a pension. All of this is perfectly legal and paid for by taxpayers.

"Fred Gorman, the founder of a watchdog group called Long Islanders for Educational Reform, says the state employee pension system is bleeding taxpayers dry and that the state Legislature needs to step up and change the system. The web site seethroughny.net lists some state pension earners. It shows a retiree from the New York Public Library earning a pension of more than $188,000 year."

June 27, 2010. State pensions are inflated as workers boost salaries. (This is NY) "Carmen A. Granto Jr. cashed in 45 unused vacation days and 747 accumulated sick days, boosting his salary over $200,000 in his two years before retiring.... Granto is getting a $147,109 annual state pension in retirement. He was making $129,000 a year when he retired in 2009. How did he do it? The same way others before him did it."

Underfunding of union pension funds isn't just a problem for those who receive that check every month. It will drastically continue to affect our economy for a long time to come - especially local economies. How? By more rape at the federal level in taxes to illegally bail out any pension funds. While the habitual liar, Obama/Soetoro says there will be no more bail outs, it is the Outlaw Congress who can push through another grotesque and illegal plunder of the people's treasury. If the Democrats believe they will lose control of the House in November, there is a good chance they will "lame duck" this type of illegal legislation on the way out:

May 24, 2010. The Next Bailout: $165B for Unions. "A Democratic senator is introducing legislation for a bailout of troubled union pension funds. If passed, the bill could put another $165 billion in liabilities on the shoulders of American taxpayers. The bill, which would put the Pension Benefit Guarantee Corporation behind struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.), who says it will save jobs and help people. As FOX Business Network's Gerri Willis reported Monday, these pensions are in bad shape; as of 2006, well before the market dropped and recession began, only 6% of these funds were doing well. Although right now taxpayers could possibly be on the hook for $165 billion, the liability could essentially be unlimited because these pensions have to be paid out until the workers die."

We are talking massive numbers:

April 5, 2010. California Pensions Are $500 Billion Short, Stanford Study Says

April 9, 2010. States Skip Pension Payments, Delay Day of Reckoning

June 14, 2010. 61% Underfunded Illinois Teachers Pension Fund Goes For Broke, Becomes Next AIG-In-Waiting By Selling Billions In CDS

June 19, 2010. In Budget Crisis, States Take Aim at Pension Costs. "Many states are acknowledging this year that they have promised pensions they cannot afford and are cutting once-sacrosanct benefits, to appease taxpayers and attack budget deficits."

As unemployment rises (it will get worse) and pensioners get less than their full check, states will continue to be unable to generate enough taxes to fund even basic services, much less these monstrous pension funds.

Are all state employees union?

Law and the Workplace On the Job
Unions in the Workplace

"If a union wins the election, must the workers join the union? No. Just as the National Labor Relations Act (NLRA) gives employees the right to join unions, it also gives employees the right to refuse to join a union. The NLRA prohibits both employers and unions from forcing employees to join a union.

"However, employees can be forced to pay for the work that the union performs on their behalf, even if they do not want to join the union. Most collective bargaining agreements contain a union security clause. In effect, this clause requires workers to pay the dues and fees that union members are required to pay. If a worker refuses to pay dues, he or she can be fired.

"Because the law requires the union to represent all the workers in the bargaining unit, regardless of whether they are members of the union, the law allows the union to "tax" the workers for the benefits they receive from union representation. Some states prohibit union security clauses."

Let me ask this question: Is belonging to a union good for your future? Do they are care about you - state unions or private ones like the AFL-CIO, Teamsters?

Let's take one of the most corrupt, the SEIU. The Service Employees International Union spent $60 MILLION dollars to get a stinking communist, who is legally ineligible to run for president "elected" -- that would be Obama/Soetoro who was born with dual citizenship. In 2007, Congressman Ron Paul introduced the Tax Free Tip Act would would make tips for service workers exempt from federal or employment taxes. You would think the SEIU and Obama/Soetoro would have jumped on that bill: No more federal taxes on tips for waiters, waitresses and so forth. Oh, no, the SEIU did nothing to let their members know anything about it. So, don't tell me the SEIU cares about their workers. That union supported a Marxist who is hell bent on stealing every last penny from every American except those he's in bed with politically and financially. To be fair, the "caring" Republicans also ignored the bill.

How about the hundred million or so working folks who don't belong to a union and are dying under the weight of federal and state taxes? Do unions serve taxpayers?

"Albany Police Officers Union President Chris Mesley recently chimed in regarding his position and the American taxpayer: "I'm not running a popularity contest here,â€

Caveat: whenever you hear stories about a "sanitation worker" getting a bajillion dollar pension, you need to ask: are we talking about the worker bees (classified employees) or about the much more highly paid "administrators" who are employed under a different system, but are still lumped with "state workers." In my state, the classified worker bees are undergoing unpaid furloughs, multi-year salary freezes, and layoffs. None of this is happening to the administrative class, who are still for the most part sucking down their six figure salaries. These folks are adept at camoflage: they will point out that they only got small percentage yearly increases - but upon a much, much higher base salary than the typical classified worker bee. They start out with twice as much paid vacation too. In theory, the classified people have more rights to due process to prevent arbitrary firing, whereas the administrators are theoretically 'at-will' employees, but if you look at who actually gets let go over time, you'll see that it's the administrators who have the job security. Same with other government employees such as city, county, school district, etc.