Subject:
pension plans A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both the employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes. Pension plans are therefore a form of “deferred compensation”. (Wikipedia Feb 2010)
US Bond Market
By John Schroy, on November 19th, 2006 |

The Democratic Party and its supporters have indicated a willingness to enact legislation that will reduce demand for bonds, while increasing supply: a recipe for lower bond prices and higher yields. Questionable economic policies are expected to include support for Fannie Mae, protectionist trade measures, and large pensions for unionized civil servants.
Municipal bonds
By John Schroy, on November 15th, 2006 |

Municipal pension fund problems are primarily the fruit of unionization of public employees. Over the last generation, trade unions have turned from their traditional base of industrial workers (eroded by factory closings due to excessive labor demands) and have fixed on the juicy target of tax-supported government workers. This could result in higher interest on municipal bonds of cities with powerful government service unions, along with increased taxes, and downward pressure on real estate values in certain cities.
Insurance companies
By John Schroy, on October 25th, 2006 |

The Pension Protection Act of 2006 uses a technical trick to dissuade retirees from transferring from company pension plans to privately insured plans. When a worker is stuck with an under-funded company plan, their lump-sum payment option has been effectively reduced by Congress. Not only workers, but life insurance companies are stiffed by this provision.
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