Are you ready and willing to bail out the unions?
According to the recently released 2014 annual report from the Pension Benefit Guarantee Corporation, the deficit in PBGC’s multiemployer program increased from $8.6 billion in 2013 to $42.4 billion in 2014.
This massive deficit is problematic for the millions of workers who stand to receive mere pennies on the dollar in promised pension benefits.
It’s also a problem for taxpayers, who could be charged with bailing out private-sector pensions that were never intended to be public liabilities.
Both policymakers and the public have paid relatively little attention to the dire financial status of PBGC’s multiemployer program. This year’s report of a five-fold deficit increase may help expose an overlooked problem.
Private rewards, socialized risk. See, we’re all in this together, but some are more together than others.