In a Traditional pension plan the employer deposits money into a trust fund that is used to pay promised benefits at your retirement. Over the years, self-serving actuaries, consultants and investment advisors have conspired (yes, “conspired” is the right word) with politicians to OVERFUND pension plans. This overfunding has cost the American economy dearly. Instead of burying billions of dollars unnecessarily in pension plan trusts that money could have been used to repay debt, add new hires, build and/or re-tool plants, increase research and development and other productive applications. Pension plan funds have reached the trillion dollar plateau and continue to escalate. As wasteful diversions continue we all lose. NEXT TIME: HOW PROPER FUNDING CAN BE ESTABLISHED, MONITORED AND ADJUSTED.
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