Defined Benefit plans in the public sector are a disaster as the actuarial/political cabal has consistently undervalued their costs to the point now where defaults are inevitable – which is something unions representing public employees do not want to hear so they use a good chunk of their members’ dues to create an alternative reality.
P.L. 2007, c. 29, which became effective on January 1, 2008, was reform legislation “designed to ensure the system serves career public employees rather than political appointees” and to “cut out the entrenched core of abuse that has been corrupting our pension and benefits systems from within.” One of the components of the new law, N.J.S.A. 43:15A-7.2, excluded professional services contractors, such as municipal lawyers, architects and engineers from enrolling in the state’s PERS pension system.
At least one lawyer in New Jersey had a problem with that and his employers offered help.
Health benefits are the immediate concern as participants in the United Mine Workers of America 1974 (UMWA) Pension Plan are unlikely to see any significant cuts in their pensions primarily because the average retiree receives about $6,900 annually, far less than the PBGC guarantee, so even after exhaustion of all trust assets by 2025 the Mine Workers will likely have the PBGC continuing to pay most of their benefits (unless of course the PBGC itself goes belly-up by then too).
Yesterday S175 was introduced by Senator Joe Manchin (D-W.V.):
A bill to amend the Surface Mining Control and Reclamation Act of 1977 to transfer certain funds to the Multiemployer Health Benefit Plan and the 1974 United Mine Workers of America Pension Plan, and for other purposes.
Immediately following S176 was introduced by Senate Majority Leader Mitch McConnell titled:
A bill to amend the Surface Mining Control and Reclamation Act of 1977 to transfer certain funds to the Multiemployer Health Benefit Plan, and for other purposes.
Both bills propose funneling money past April from the Abandoned Mine Reclamation Fund to pay health benefits to “orphaned” retired miners and their dependents left adrift by coal companies that have gone bankrupt. However S175 also wants the UMWA Pension Plan to get some money. The question is from where?
The New York Times headline seemed interesting:
But then it turned out NOT to be about why there is supposedly less oversight over journalists but rather implied a nonsensical link between having fewer people working on newspapers and somehow there being less coverage of important government actions.