From Birch Gold Group
Public pensions are falling apart around the country, but now the security of private pensions is being threatened as well. Based on a new Federal law passed in 2014, the U.S. Department of the Treasury just made a shocking decision to allow a Cleveland-based ironworker pension to start slashing member benefits as early as next month. Now, experts fear other struggling private pensions could quickly follow.
Opening Pandora’s Box on Pensions
It’s always been assumed that both public and private pensions will find a way to fix their shortfalls and pay out their obligated benefits – with public pensions using government cash (from budget cuts and tax hikes), and private pensions relying on corporate profits and cash reserves.
But today’s economy is making those old pension safety nets unfeasible; governments are running out of money, and private sector performance is plummeting.
Continue reading “U.S. Treasury Lets Private Pensions Slash Benefits for the First Time In History”
