Dems Use United in Retirement Argument

[wicket]

LINK

House Democrats said Wednesday that United Airlines' success in winning court approval to terminate its employee pension plans underscores the need to preserve a traditional Social Security benefit.

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"For those pilots, for those flight attendants, for those mechanics, for those ramp employees, Social Security this morning is much greater percentage of their total retirement package than they had ever anticipated when they started working for United Airlines," Rep. George Miller (news, bio, voting record) of California, top Democrat on the House Committee on Education and the Workforce, said after emerging from his party's weekly caucus meeting.

Rep. James Clyburn D-S.C., noted polls show less than a majority of Americans support a White House overhaul of Social Security that includes creating private investment accounts. "I think the headlines today will help them make up their mind and they will join that 60 percent who now oppose what the president is proposing," the congressman said.

The White House took the opposite view, arguing the United case underscores the need for Social Security reform. "The UAL situation is Exhibit A in the debate about why we must shore up America's retirement security program now, so that workers can be assured that they will have a decent retirement," said spokesman Trent Duffy.

[Parche]

1. SS

How they turn everything around and spin the news for their
own use.

This is the worst for privatization, look what happens when you
privatize, this is a 401k pension plan

Social Security is the government

[hughee99]

14. This is not a 401K pension plan...

A 401K is an INDIVIDUAL retirement account, where the $ that goes in is not a "cooperate asset" and the cooperation has no control over the investments that are chosen by the individual (though they do have control over which investment plans are offered under the plan). While a 401K is just a exposed to market drops as a cooperate pension plan, the $ that is invested in it belongs to the employees themselves. Were this a 401K, the Airline would not be able to seize the assets within.

[Ganja Ninja]

2. Before they allow this company to shirk their pension ...

responsibility they should be forced to file for bankruptcy. Whatever money was in the pension fund should be paid back before any creditors are payed, before any stock holders or corporate exec's are compensated, and the company should have to close their doors forever.

[wicket]

4. if it's good enough for the Average Joe (see Bankruptcy bill)

it should be good enough for United!

[DemoTex]

7. UAL has been in Chapter 11 for over two years.

The money in the pension fund will go to the PBGC. There it will be used to pay pension obligations, mainly to already-retired United employees. I know. We went through this at US Airways in 2003 when the pilots' pension plan was terminated by a bankruptcy judge (3/31/2003). I always point out that US Airways former-CEO Dave Siegel, who presided over bankruptcy #1 and terminating the pilots' pension plan, had a total compensation package of over $10 million for that horrible year (2003) at US Airways (as reported by the Washington Post in 2004).

[FloridaPat]

3. Decent retirement with a 40-50% benefits cut? I would really like to

know what they eat or drink in DC that puts them in a constant altered state from the reality I know. I could use some of that to get through the next 4 years.

[Inland]

5. "Yes, you should have a private account and invest in......United."

Duh.

[blondeatlast]

17. Precisely. Scary, ain't it? nt

[Chicago Democrat]

6. Thousands and Thousands of my neighbors work for United...

:(

[Democat]

8. Look how the press says "Democrats" instead of a more neutral headline

If the rolls were reversed (Republicans were against the SS changes), the headline would be something like "Many see parallels between United Case, Social Security debate" - but because the Democrats are fighting back, the media tries to isolate the Democrats and make it seem like Democratic politicians are trying to exploit the United Issue.

The right wing media knows how to frame things to give the Republicans the biggest possible advantage, even when our side is fighting back.

[Dyedinthewoolliberal]

9. You know what?

This United thing is even more of a case for Social Security as it now stands. This is precisely why the Government has to intervene in the market place. Left to their own devices, many corporations would pull this kind of thing on purpose! You can't trust the bastards as far as you can throw them.......

[xchrom]

10. corporations have been wooing the gop re: ejecting

their pension plans for years.

it is one the corporate oligarchy's ''grand plan'' for creating more wealth moving in their direction.

no -- i don't think it's a back room conspiracy -- but i think ceo's, cfo's, people who sit on boards of directors for multiple corporations, etc know each other -- they have goals they want to see met -- and they spend their money for greater control over their environment.
which is considerable given what they control.

[wicket]

11. kick

:kick:

[Zorra]

12. Was the United Airlines Pension Fund invested in the Stock Market?

If so, how much was lost through this investment.

Does anyone know?

[Zorra]

13. Yep, found proof. Bush and the fascists are full of shit on privatizing

Social Security. They don't have a leg to stand on.

NYT: November 15, 2004
Teamsters Find Pensions at Risk
By MARY WILLIAMS WALSH

But the Central States situation shows that using stocks or other volatile assets to secure the obligations of a mature pension fund greatly increases the risk of getting caught short-handed in a down market. If that happens it can be nearly impossible to bring the ailing pension fund back. This is what has happened recently to pension funds at United Airlines and US Airways.

"Stocks are not a hedge against long-term fixed liabilities," said Zvi Bodie, a finance professor at Boston University who has long challenged conventional pension investment strategies. "For many, many years, right down to the present day, the dominant belief among pension investment people is fundamentally wrong. Now that's a big problem."

http://www.cepr.net/Economic_Reporting_Review/nytimesarticles/teamsters_11_22.htm

Bush lies again.

[Zorra]

15. kick

[blondeatlast]

16. Letter from 17 Senators to the PBGC Board--could there be hearings?

PDF file, so I can't post a snip.

http://www.unitedafa.org/res/chaos/pdf/20050506_pbgc_ltr_congress.pdf

Pretty stellar group of Dems, I would say.