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View Diary: Social Security by the Numbers (73 comments)

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  •  And Social Security is better than a pension (2+ / 0-)
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    Bruce Webb, Liberal Thinking

    from a private company because the people running the private pension can mess around with the numbers.

    If a private pension has more money than it needs to cover the pension obligations, it's overfunded. If a private pension has less money than it needs, it's underfunded. So what happens? An overfunded pension tempts the company to raid the pension (hey, we've got extra money! let's spend it!). An underfunded pension tempts the company to declare bankruptcy or to reduce pension payments or to do some fancy accounting to spin off the pension obligations to a separate company.

    And this happens no matter who's in charge (could be a company-run pension plan, a union-run pension plan, or a state government pension plan).

    "Stupid just can't keep its mouth shut." -- SweetAuntFanny's grandmother.

    by Dbug on Sat Mar 30, 2013 at 06:21:25 PM PDT

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