Skip to main content

A growing crisis that could impact all retirees

11/13/2013 01:51PM, Published by ACL, Categories: In Print, Opinion



Letter to the Editor:

Americans love catchy phrases and buzzwords, but sometimes such marketing tactics are nothing more than putting lipstick on a pig. That is exactly what corporations are doing when they refer to a newfangled, risky financial transaction that they have named  pension de-risking.    

This is when companies sell off their retirees' pension plans to investment funds or insurers, converting what were federally protected pensions into annuities.  This has the impact of stripping defenseless older Americans of legal protections of both the federal ERISA pension law and Pension Benefit Guaranty Corporation. 

In addition, these annuities become subject to a variety of state laws, dependent upon where the retiree lives. Last year, General Motors sold off 76,000 retiree pensions to Prudential Insurance, and this year, Verizon sold 41,000 pensions to Prudential.  This is not just a GM and Verizon issue, it's a growing national crisis likely to impact all retirees. 

In reality, this practice is really  Pension Stripping,  a violent act against retirees and their earned pension funds.  America's retirees need help and real protections on the state level, where insurers are regulated.

 

Robert T. Garrett

Kennett Square


Like what you're reading? Subscribe to Chester County's free newsletter to catch every headline



erisa pension law pension benefit guaranty corporation retirement pension


You might also like

Retirement: A new and different form of work

Both financial and physical well-being in retirement require foresight and planning.

Recently retired Elk Twp. supervisor demonstrated ‘how government should work'

Palmer “Pal” Durborow served for 12 years on the Elk Township Board of Supervisors and will now stay on as trail supervisor.

  • Cecil County Fair

    07/29/2015
    08:00am — 09:00pm

    There is something for everyone at the Cecil County Fair. Highlights include the carnival midway,...


  • Children of all ages are welcome to join us! Admission is free. Enjoy games, prizes, bouncy castl...


  • Gentle Yoga

    07/29/2015
    05:00pm — 06:00pm

    Reduce the aches and pains of age by increasing your range of motion through the practice of yoga...


  • Hatha Yoga

    07/29/2015
    06:30pm — 07:30pm

    This series of vigorous exercises is designed to strengthen the body and increase flexibility whi...


  • NFL Flag Football Fall Season Sign-ups

    07/29/2015
    07:00pm — 11:55pm

    NFL Flag Football Fall Season Sign-ups Avon Grove NFL Flag Football has begun on-line registra...


  • Cecil County Fair

    07/30/2015
    08:00am — 09:00pm

    There is something for everyone at the Cecil County Fair. Highlights include the carnival midway,...


  • Turtle - Kids Paint with LouLou!

    07/30/2015
    10:30am — 12:00pm

    Looking for something fun for your kids to do on a summer morning? Join LouLou for 1.5 hours of p...


  • Sunday Brunch

    07/30/2015
    11:00am — 02:00pm

    Every Sunday from 11-2PM Continental Buffet, Waffle bar, fresh fruits, Mimosa, Bloody Mary an...


  • Coatesville Youth Initiative Open House

    07/30/2015
    04:00pm — 07:00pm

    Please join us to welcome our new space! Light refreshments - drop in format - ample reserved pa...


  • Clutterers Anonymous

    07/30/2015
    06:00pm — 07:00pm

    Clutterers Anonymous℠ (CLA℠) is a fellowship of men and women who share their experience, strengt...


  • NFL Flag Football Fall Season Sign-ups

    07/30/2015
    07:00pm — 11:55pm

    NFL Flag Football Fall Season Sign-ups Avon Grove NFL Flag Football has begun on-line registra...


  • Cecil County Fair

    07/31/2015
    08:00am — 09:00pm

    There is something for everyone at the Cecil County Fair. Highlights include the carnival midway,...


  • Sunday Brunch

    07/31/2015
    11:00am — 02:00pm

    Every Sunday from 11-2PM Continental Buffet, Waffle bar, fresh fruits, Mimosa, Bloody Mary an...


  • NFL Flag Football Fall Season Sign-ups

    07/31/2015
    07:00pm — 11:55pm

    NFL Flag Football Fall Season Sign-ups Avon Grove NFL Flag Football has begun on-line registra...


 

Chester County High School Sports