Benefits And Benefits Of Pension Pensions

1401 WordsMar 11, 20156 Pages
Pension, a regular payment made during a person’s retirement from an investment fund to which that person or their employer has contributed to during their working life. After retirement a retiree depends one their pension as a source of income. Hundreds of thousands of Americans who have spent their lives working hard to support themselves and or their families for years have gotten their pensions either cut or completely taken away. There are a variety of negative effects for pension recipients when pension plans given by employers go broke or pensions are cut entirely and why it is crucial for employers to follow through with their promises of a wholesome pension. These negative effects range from retirees’ lack of or no medical care,…show more content…
Over twenty thousand of these pension recipients are retired fire fighters, police officers, and many other public servants who spent years of their lives helping the city and did not pay into Social Security. Many retirees like Mr. Larry Newberry, a retired firefighter said, "I put my money into our pension fund and was promised it would be there by law when I retired. I sucked up smoke and put my life on the line every day I went to work and have the injuries to prove it. The least the government can do is stand by Michigan law." [The State of Michigan Constitution states that public pensions “shall not be diminished or impaired.”] Potentially having to move out of his home to a trailer Newberry says that he does not need the money for himself but for his seven grandchild who he wanted to help pay for college. All he wanted was just to help put his seven grandchildren through college but now he cannot with the deep pension cuts. Now retired U.S. Bankruptcy Judge Steven W. Rhodes, the presider over Detroit’s bankruptcy says he feels “deeply concerned” about the unfunded pension liabilities. Rhodes has even said that Detroit and many other cities need to consider transitioning employees to 401k retirement plans. Though he ruled that municipal pensions are protected by the state constitution but are still vulnerable
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