Wednesday, August 29, 2012
Is this what you want Conway doing to you?
Without a Pension's Security
Once, Americans could expect enough money to take care of themselves after a life of work. The promise was pulled away.
by Donald L. Barlett and James B. Steele
In “The Betrayal of the American Dream,” Donald L. Barlett and James B. Steele revisit their 1991 Inquirer series, “America: What Went Wrong,” in which they forecast a decline of the middle class. Now, they document how actions going back three decades have left millions of Americans in economic ruin. Excerpts from their book continue in Currents every Sunday through Aug. 19.
Of all the statistics that show how the rules are changing for middle-class Americans, here is one of the most alarming: Since 1985, corporations have killed 84,350 pension plans - each of which promised secure retirement benefits to dozens or hundreds or even thousands of men and women.
Corporations offer many explanations and excuses for why they are cutting down a vital safety net for Americans, but it all comes down to money. The money saved by not funding employee pensions now goes for executive salaries, dividends, or some pet project of a company's CEO. Congress went along and even compounded the betrayal by pretending that the change was in employees' best interest.
What this means is that fewer and fewer Americans will have enough money to take care of themselves in their later years. As with taxes and trade, Congress has been pivotal in granting favors to the most powerful corporations. Lawmakers have written pension rules that encourage businesses to underfund their retirement plans or switch to plans less favorable to employees.
These rules deny workers the right to sue to enforce retirement promises. Lawmakers have also written bankruptcy regulations to allow corporations to scrap the health-insurance coverage they promised to employees who retired early - including workers who were forced into early retirement. Congress has enacted legislation that adds to the cost of retirement. One by one, policies that once afforded at least the possibility of a secure retirement to many seniors have been undermined or destroyed, while at the same time Congress has allowed corporations to repudiate lifetime-benefit agreements.
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