Jackpine Elders

Bolstering Call to Expand Social Security, New Reporting Reveals How Corporations Are Offloading Pensions

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    eridani
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    @eridani

    https://www.commondreams.org/news/2019/08/07/bolstering-call-expand-social-security-new-reporting-reveals-how-corporations-are

    New reporting showing companies’ scrapping of pension plans has gone into overdrive means that Social Security must be expanded, an advocacy group said Wednesday.

    “Expanding Social Security is important for today’s retirees,” Social Security Works said in a tweet, “but even more important for tomorrow’s.

    The shift from traditional pensions to 401(k) or similar retirement plans—a change panned as an inequality-fueling disaster—isn’t new. “But lately,” reported Axios, “those changes are happening even faster.”

    The outlet attributed the development to a “perfect storm of circumstances, from lower interest rates to higher longevity rates,” which “is prompting corporations to offload their pension plans—by selling them to insurance companies and offering lump-sum payments to some workers.”

    This offloading is known as a “pension risk transfer” (PRT).

    Jesus: Hey, Dad? God: Yes, Son? Jesus: Western civilization followed me home. Can I keep it? God: Certainly not! And put it down this minute--you don't know where it's been! Tom Robbins in Another Roadside Attraction

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