The Next Bailout: $165B for UnionsMay 24, 2010
By Erik Berte - FOXBusiness
Taxpayers could be on the hook for
another $165 billion if a bill to bail out
private union pension funds makes it through Congress.
A
Democratic senator is introducing legislation for a bailout of troubled
union pension funds. If passed, the bill could put another $165 billion in liabilities
on the shoulders of American taxpayers.
The bill, which would put the Pension Benefit Guarantee Corporation behind
struggling pensions for union workers, is being introduced by Senator Bob Casey, (D-Pa.),
who says it will save jobs and help people.
As FOX Business Network's Gerri Willis reported Monday, these pensions are in bad shape;
as of 2006, well before the market dropped and recession began, only 6% of these funds
were doing well.
Although right now taxpayers could possibly
be on the hook for $165 billion, the
liability could essentially be unlimited because these pensions have to be paid
out until the workers die.
It's hard to say at the moment what the chances are that the bill will pass. A hearing
is scheduled Thursday, which will give the public a sense of where political leaders sit
on the topic, said Willis.
Just last week President Obama said there would be no more bailouts.http://www.foxbusiness.com/personal-finance/2010/05/24/lawmaker-introduces-b-union-pension-bailout/
