Another Way Washington Just Robbed Retirees …
Whenever Washington is given an opportunity to stand up for savers and retirees, they almost always do the opposite. As usual, the name sounds innocent enough. In this case, it’s called “The Surface Transportation Bill.”Yet what this law actually does is allow employers to contribute less money into their pension plans.

All told, it should mean an estimated $35 billion LESS going into those plans in 2012 vs. original expectations of $80 billion. Yes, that means almost half as much money going into employee retirement plans this year. Then, next year, it will likely amount to another $73 billion less in private pension plan contributions! .....Pension plan contributions are tax deductible, so instead of going into retirement plans this money will now go into Federal coffers.

What’s going to happen right now, however, IS certain. The money that should be going into corporate pension plans will now go to Washington, who will be using the proceeds to:
Renew transportation programs (essentially meaning more highway and bridge construction projects to “save or create” jobs)
Keep student loan interest rates at low levels (because they know that this is likely to be the next major bubble to pop)

We have corporate plans that are underfunded. We have new laws that amount to less money going into those plans. And we have the government-sponsored insurance for those plans without enough money to even pay the pensioners it’s already covering. 

................ Nilus Mattive