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“Union-negotiated pension schemes consistently maintain dangerously low ratios of assets to liabilities,” notes Diana Furchtgott-Roth, the study’s author and former chief economist at the U.S. Department of Labor. “Although nearly 90 percent of non-union funds had at least 80 percent of the funds they need, only 60 percent of union plans were at or above that mark.”
Compared to pension plans for rank-and-file employees, the pensions funds for union officers and staff were in much better shape — which undermines the argument that lower pension fund values could be explained by weaknesses in the economy or the stock market. “The success of the officers’ funds shows the heads of the national organization know how to properly fund a pension plan if they choose to,” explains Furchtgott-Roth.
But apparently many union officials choose to pursue activism in causes that don’t directly benefit their members, instead. Corralling in new members would allow this Ponzi scheme-like arrangement to continue, feeding money into underperforming pension funds.
So, to answer our original question, Big Labor wants more members and more dues money to spend on politics — and it wants Uncle Sam’s help in getting them.
Happy Labor Day!
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?