To make things worse for workers, the new transportation bill allows companies to base their contributions to their pensions on the basis of the last 25 rather than 2 years. By assuming a higher discount rate, they have less need to fund their pensions, assuming a high rate of return. For pensions to survive they must aim at a higher rate of return to compensate for lower contributions, creating an incentive to invest in high risk junk sold by the financial system -- a recipe for disaster.
-- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
