PatriotsReign

Now we're supposed to bail pensions of people who worked for private companies? I don't think so Mr President...no way!

Will Taxpayers Be On The Hook For American Airlines' Pensions?

"American Airlines filed for bankruptcy in November. The company needs $18.5 billion to cover its pension promises to current and former employees, but it has only set aside $8.3 billion.

Taxpayers could wind up on the hook for billions. Here's why"

Will Taxpayers Be On The Hook For American Airlines' Pensions? : Planet Money : NPR

Can I get my 401K bailed out if it tanks?

The kicker is that we have a national pension insurance program that's supposed to cover these issues, but the fund is running out of money. So instead of charging a higher fee to businesses, they think taxpayers will cover the shortfall.

Since it was the airline employee unions that negotiated this contract, the unions should pay for it!

Again...I don't think so Mr President!

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"No one walking this earth knows what is truly righteous"

Drewski

Sounds like a horrible idea. AA should just sell some of their fleet to make up the short fall. However $10B would be tough to come by on their aging fleet.

Please to all things holy, enough with protecting failed business' (aside from the auto industry as it was a unique case where that one industry touched so many others)

Mrs.PatsFanInVa

Why are you yelling at the president, PR? Do you not read your own articles?

Here, let me help. Pay particular attention to the red bolded parts.

President Obama has proposed raising the premiums companies pay to PBGC, to make up the shortfall. But big business groups oppose any increase.

Why are you mouthing off at Obama, who agrees with you and not saying a word about "big business" who is opposing it?


[quote]Since it was the airline employee unions that negotiated this contract, the unions should pay for it![/quoet]

Again......did the union employees negotiate with themselves? Why do the losers (the union employees whose pensions are gone) bear the brunt of your anger when their equal co-negotiators (AA in this case) get to keep their money and restructure?

Again....your anger is sadly misplaced since Obama wants the insured businesses to pay higher premiums to make up a deficient and it's the businesses who are refusing to do so.

DarrylS

I have a friend who is retired from United Airlines and his pension was guaranteed by the Pension Benefit Guarantee Corporation, a government agency.

Welcome to PBGC

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"Being the best doesn't mean you always win. It just means you win more than anyone else".. tweet from Kurt Warner to Tom Brady.

Mrs.PatsFanInVa

By the way, who is your mythical "they?"

The head of the PBGC says, clearly, that he expects AA to cover it themselves or to do a much better job of proving that they can't before PBGC will even think of picking them up under their insurance program.

Outside of one little "teaser" scare line, there's nothing about taxpayer money going anywhere, is there?

If you're really interested in what's happening with AA...and how Bain is involved, watch this:


The Last Word

PatriotsReign

I included that in my original post Darryl. The problem is, the PBGC is currently under-funded due to high pension defaults. It is a self-funded insurance for private pensions and is paid for by businesses.

But what the article cites is that businesses are refusing to pay an increase in fees so the shortfall may have to covered by tax payers...and that's wrong.

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"No one walking this earth knows what is truly righteous"

PatriotsReign

So why didn't the president tell them they don't have a choice?

"Mouthing off"??? Is that what you call my comments? I do have the right to question any public employee...that is what Mr Obama is by any account.

I am calling this to his attention because he's the one who can put a stop to the insanity of asking tax payers to cover the shortfall of a private pension system.

It's not our problem MrsP...it's their's.


No, the UNION negotiated their contract with AA...nothing to do with tax payers, is it?

I say let them battle it out and keep tax payers out it.


Not really...

And I'm refusing to give my tax dollars to help with a private pension! Simple concept really.

Again...tell businesses they have no choice but to pay a higher premium.

Do you personally believe that under-funded PRIVATE-SECTOR pensions are taxpayers responsibility?

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"No one walking this earth knows what is truly righteous"

Mrs.PatsFanInVa

I, personally, believe that since AA has enough money to pay Bain millions of dollars a month to figure out ways around paying their own pensions that they are capable of firing Bain and paying their own pensions, or, barring that, that the president is doing the right thing by saying that the businesses who insure their pensions through the PBGC can start paying higher premiums,thus covering themselves as well as their brothers-in-big-business. I, personally, believe that if a company has money overseas or elsewhere they should be required to use that money to fullfill their past obligations and not to finance their new ventures. I, personally, believe that the bankruptcy laws for big businesses need serious changing.

I, personally, believe that acting like Chicken-Little, posting that there's a taxpayer expense bail-out in the works when, for all the information you've provided, there is not, is dishonest fear-mongering.

PatriotsReign

I only posted an article from NPR so how is that fear-mongering on my part?

I'm glad you're against any tax-payer support for these people as am I. Nice that we agree now & then.

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"No one walking this earth knows what is truly righteous"

Real World

Nope.

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