Largest Public Pensions Face $2 Trillion Hole, Moody’s Says

Largest Public Pensions Face $2 Trillion Hole, Moody’s Says



I remember,many years ago, when selling pension plans to businesses started in the Uk. I was just starting out on my own in accountancy and tax work and thought that I could combine the two to provide income.

So this guy explains to me,not knowing my accountancy background, that a small firm pension is money in the bank for company owners.

The employee pays in a set monthly amount and the employer matches it. Sounds good.  BUT  the employer is the owner of the fund. The employer can authorise a loan(interest free) from the fund to the business. The fund is not ring fenced!!  The employer can also miss payments hoping to make them up later (rarely happens)

So the mug employees are paying to work in the firm ! They continue to pay in,the employer continues to take out and never repay or catch up.  Wonder what the definition of a swindle is???

Some bigger companies, who had unions, began to be questioned. So all that they did was to take on to the pension group a union rep. He/she was continually out voted!!  They gave the mug an office, a car or just plain bribes to keep their mouths shut. If nothing worked,then they just sacked the person!!!