This article is to be read along all posts titled “curtailing public spending” on this blog.
“Some younger retirees will lose up to 70 percent of their pensions and the PBGC will be saddled with a $6.7 billion debt.
PBGC [Pension Benefit Guarantee Corporation is a government entity that is supposed to take over pension obligations from companies that go bankrupt] spokesman Jeffrey Speicher said the benefits of at least 3,481 Delphi retirees will be cut, but 4,100 will see no reduction.
PBGC is still reviewing the status of 700 complicated cases.
On Feb. 1, reductions ranging from $6.72 to $3,700 a month will be imposed on 581 retirees above age 62, Speicher said. Another 2,900 will begin seeing cuts from $10.25 to $2,200 on March 1.
The average retiree losing pension benefits will see a monthly cut of about $850, he said.”
Of course, if you follow this blog, you will also know that the PBGC is bankrupt. You would have thought that the PBGC would have a stash of money collected from all corporations throughout the years in order to front just this type of situation. The truth of course is that not only the money that has been collected has been funneled to the Federal General Fund and thus spent, but just in the past two years (not to mention the past ten) the PBGC has been saddled with so many pension plans from failing companies that it is failing itself.
As far as I am concerned we are still in full deflation mode and this situation is only going to get worse.
Countdown to an expedient global conflict is still on.
Why has nobody anywhere ever objected to governments spending money that was supposed to be set aside? Why has no mainstream politician or investigative reporter ever remarked on what is clearly a larcenous policy?
Why do most people assume that inflation can be infinite and that governments can bring about inflation deliberately and willingly thus eventually always saving us from excess spending?
Tags: bankruptcy, deflation, delphi, pbgc, pension benefit guarantee corporation, white collar crime