Podcasts about pbgc

A steady cash flow stream is one of the most valuable things you can have, both before and after you retire. Pensions guaranteed by the PBGC and Social Security are two forms of this "protected income," and are designed to pay you as long as you live, regardless of current stock market conditions.  But if you don't have a pension, or your Social Security isn't enough to cover your short-term needs, then you may want to consider purchasing another form of protected income, one that you also cannot outlive.  But those guarantees come at a cost, and you need to make sure that cost is worth it for you.How do you determine that?  Find out who should (and who should not) consider a form of protected income with podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!

Church pension plans may be at risk I hate to say this because we all want to believe that one of the safest places to go is church. Unfortunately, there are church pension plans like Saint Claire's Hospital in Schenectady, New York and Saint Joseph Hospital in Rhode Island that had no or very little money left for retirees when it was time for their retirement. You may be wondering how can that be? Pension plans should be safe especially under federal law where there are protections from the Employee Retirement Income Security Act of 1974, which is commonly known as ERISA. You may also think if you know something about pension plans that employers must pay into the pension benefit guarantee corporation or what is also known as the PBGC. Unfortunately, when the government came up with the federal law on pension plans to protect retirees, there was concern about the constitutional separation of church and state and they did not want to cross that line. So they exempted churches and employers related to the church, which would include schools, hospitals and publishers. Church pension plans are allowed to contribute to the pension benefit guarantee corporation, but they're not required to and unfortunately most do not. It is sad that we cannot trust some of our religious leaders to protect our financial future. If you or someone you know works for a type of association related to a church and they have a pension plan they may want to dig deep into it to make sure it's really there. Unfortunately, there have been church pension plans that have exaggerated the returns on their investments in their pension plan and ultimately collapsed when people began retiring. It may be unfortunate but it could be wise to have a secondary retirement plan if you work for a church just to be on the safe side so you have something there in your golden years!    Structured products are back from 2008 Structured products that destroyed the economy in 2008 are back once again. In 2008 there was nearly $1.8 trillion of structured products issued. For 2025, the experts are forecasting structured product issuance of $2 trillion. If you don't understand what a structure product is, it is nothing fancy other than Wall Street creating loans that hide their true value. In 2008 these were mainly mortgage-backed loans that Wall Street sold and told people there's no way that these borrowers would default on their real estate loans. Today, they are even riskier with the loans backed by weak assets such as credit card debt, lease payments on cars, airplanes, golf carts and even plastic surgery loans. Recently in Las Vegas there was a convention for four days that was packed with bankers from Wall Street and around the country that were all in the buzz about the hype of the profits they can make off of these structured products. So far investors have been safe and have not had any losses, but that will change in the years to come especially if the economy weakens. With higher demand, prices for these products are now higher and I believe overpriced. The higher demand also creates riskier investments that look similar to products with less risk but make no mistake, they have far greater risk. It appears to me that the greed on Wall Street is back and the bankers are trying to tell you that stock investing is out. They tell you that you should be putting your money into these structured products for diversification to avoid market fluctuations, but the real reason for this is the fees they make are so much higher than if you just invested in good quality equities that pay dividends and grow over the long-term. Wall Street makes nothing off of that!   Jobs report seems uneventful, which is a good thing February nonfarm payrolls increased by 151k in the month, which was less than the estimate of 170k. While I wouldn't say that's a positive, it was better than last month's reading of 125k and it still shows the labor market remained healthy. Revisions to th

Hello and Welcome Back! After a few weeks away on holiday, I am really excited to release this deep dive podcast on the 2002 NZ Open. The 2002 NZ open is famously known for being the year that Tiger Woods came to play at Paraparaumu Beach Golf Club. It was a fascinating event for so many reasons, and I was fortunate to sit down with Allan McKay who was the Pro at PBGC at this time, and was instrumental in securing Tiger for the event. I also include audio from Steve Williams and Leo Barber. Enjoy!!Link to Legends of The Links - Steve Williams: https://www.youtube.com/watch?v=0i-6_4nst2c&t=1s

Leo Barber the GM and Course Manager at Paraparaumu Beach Golf Club on the Kapiti Coast of the North Island of New Zealand joins us for this episode. I have had the great pleasure of playing the links at Paraparaumu Beach on a number of occasions, over the course of 4 rounds there, thus far, the washboard fairways and associated dunescapes really resonated with this self confessed links junkie. Leo recently marked the 75th anniversary of Alex Russell's arrival at Paraparaumu with a presentation to the members of the club and joins us today to recount both the story of the links and his own journey which began a mere 15 minutes down the road from the club in Pukerua Bay. We hope you enjoy our chat! Please check out the following links for some additional supporting content Leo Barber's pictorial history of PBGC (https://youtu.be/8qH4NAj0Qe0) Ran Morisset's course tour of PBGC on Golf Club Atlas (https://golfclubatlas.com/countries/paraparaumu-beach/?portfolioCats=249%2C250%2C251%2C252%2C253%2C254%2C255%2C256%2C257%2C258%2C259%2C260%2C261%2C262%2C263%2C264%2C265%2C266%2C267%2C268%2C269%2C270%2C271%2C272%2C273%2C274%2C275%2C276) Christian Cullen best try's link (https://www.youtube.com/watch?v=QQ9EYiDQYsk) Clyde Johnson website - Book on North Island Country Golf in NZ (https://www.cunningolfdesign.com/writing) Intro and outro music - _Shoreline Serenade by Dye O _- under license from Epidemic Sound Special Guest: Leo Barber.

One of the most valuable things you can have, both before and after you retire, is a steady stream of income. What makes it more valuable to you is if that income is protected (meaning "guaranteed") by some entity, like the federal government, the PBGC, or the claims-paying ability of an insurance company.Two forms of protected income that people generally receive at retirement are Social Security and pensions. These, either together or separately, form the basis of your financial plan and can help determine how much extra income (if any) your nest egg will need to provide for you. In other words, the more protected income you have, the less you'll have to rely on your savings.Why is this so important?  Find out from podcast host Johnny Dean and his guest, “Professor” Rick Plum, CFP® on this week's episode of Managing Your Financial Future!

D'ontra Hughes is the Founder and CEO of Spare, which uses tech to solve cash management problems for unbanked small businesses and enterprises. D'ontra shares his entrepreneurship journey, driven by realizing the financial industry's impact on less privileged individuals. D'ontra highlights a significant issue in the banking sector where the poorest people are often charged the most in fees, perpetuating poverty. Spare addresses the high fees unbanked individuals face when accessing their money. D'ontra's entrepreneurial journey involved various challenges, including learning from customer feedback, understanding the importance of data-driven decisions, and navigating the competitive startup environment. The conversation also covers the impact of the COVID-19 pandemic on Spare, leading to a strategic shift and a focus on regions with high cash circulation. D'ontra emphasizes the importance of strategic planning, data analysis, and a systematic approach to business growth. He also discusses the personal aspects of being a CEO, stressing the importance of maintaining personal relationships and self-care. Spare (https://www.gotspare.com/) Follow Spare on LinkedIn (https://www.linkedin.com/company/spare-cs/), Facebook (https://www.facebook.com/SPAREapp/), Instagram (https://www.instagram.com/gotspare/), or X (https://twitter.com/gotSPARE). Follow D'ontra Hughes on LinkedIn (https://www.linkedin.com/in/dontrahughes/) or X (https://twitter.com/dontrahughes). Follow thoughtbot on X (https://twitter.com/thoughtbot) or LinkedIn (https://www.linkedin.com/company/150727/). Become a Sponsor (https://thoughtbot.com/sponsorship) of Giant Robots! Transcript: VICTORIA: This is the Giant Robots Smashing Into Other Giant Robots podcast, where we explore the design, development, and business of great products. I'm your host, Victoria Guido. And with us today is D'ontra Hughes, Founder and CEO of Spare, which uses tech to solve cash management problems for the unbanked small businesses and enterprise. D'ontra, thank you for joining us. D'ONTRA: Well, thank you for having me. VICTORIA: Well, wonderful. So, we met at San Diego Startup Week a few weeks ago. So, I'm excited to have you on the podcast today. Why don't you tell me what was your experience of San Diego Startup Week? And how did you come to be one of the speakers on a panel there? D'ONTRA: Yeah, well, it's always a really nice thing to take part in, you know, kind of those innovative startup week events because you get to see a lot of what people are working on or what they're doing. So, we've been working very closely with the County of San Diego, especially with the city of Oceanside with our latest technology. And, you know, there came this opportunity where I could get on the stage and kind of tell people about our journey a little bit, I think because we're becoming a little bit more successful or something [laughs]; I don't know what to say. We're getting better at what we're doing, apparently, and so folks wanted to hear what I had to say. VICTORIA: I was able to catch your talk, and I thought what was really inspiring about it was that you came from the background of working in the financial industry and saw an opportunity to solve a problem that was common for other people and to be more fulfilled by the work you were doing. So, can you share a little bit about that? D'ONTRA: I came out of a background in finance, as you said. I used to work for JPMorgan. It feels like a long, long time ago. And that was my last corporate job until I became an entrepreneur. You know, one of the things that I learned at that time...and not that the bank was doing anything wrong, but in the nature of finance, it's a business, right? It's got customers. It's got clients. It's got shareholders. And the most important thing is it's designed to make money. There's always someone that loses, right? And sometimes you could say that that's the nature of business. But in this regard, it was a lot of people who lost that couldn't recover or wouldn't be able to recover from the financial waste that was left. You know, I went on my entrepreneurial journey wanting to learn how to build a business and, you know, try to solve problems for myself or for other people. And specifically for this endeavor with Spare, which we launched back in 2015, we looked at the subset of the population, roughly about 25% of the U.S. population, 90-something million households of folks that were basically spending about 7% of their own income every year just accessing their own money. And, like, that's wild, right? Because if I came to you and I said, "Hey, if you got 100 bucks in your pocket, in order to pull that money out of your pocket, you got to give me $7," you'd be furious. And so, the unfortunate thing is that this kind of tax on the poor was being facilitated by the ATM industry. At the time when we began the company, you had consumers out there going to an ATM roughly about seven times per month, withdrawing roughly about $60 per transaction. And the average fee at that time was $4.09. And today, the average fee is just about $4.80, something cents, depending on where you're at in the country. And so, it's unfortunate the difference in these fees for these folks. It might sound absurd to say this, but it makes a difference between eating and not eating for some of these folks. And anyone who's a struggling college student or lives on the low end of the economic spectrum they understand what I mean by that, where the extra $30 or $40 in their pocket per month actually matters. It's an extra tank of gas or two tanks of gas, depending on what kind of car you're driving. And so, it matters. We wanted to really take a really clean look, an assertive look at the relationship that, not just the ATM, but just cash management services or cash management on a local level the impact that it actually has. VICTORIA: Yeah. And to kind of play that back a little bit, let's say you have a bank or you're not able even to get an account in a traditional bank. Maybe your bank doesn't have an ATM in your neighborhood, and you need to always go to a different ATM to get money out of your bank. And you're just constantly paying those fees. You're more likely taking out smaller sums of money, and then you have to do that over and over again. And it becomes a really high percentage of your income that goes just towards getting money out of the ATM. D'ONTRA: Yeah, absolutely. So, when you consider even during the pandemic, right? Everyone's at home, but businesses were trying to figure out how to cut costs. And banks, just like any other business, when they have a retail bank branch that's in a neighborhood that's perhaps low income, they may not keep that bank branch around. And that's unfortunate because it creates an additional hurdle for folks to be able to become banked. You may hear this term of banking deserts, and that's partially because folks have to travel too far, which is an external cost of time, and money, and resources, just to be able to put their money inside of a bank. Now, the additional cost for this particular demographic is that fees tend to add up. And we all know that the bank says, "Hey, as long as you keep $1,200 in your bank account, we're not going to charge you any fees." Well, that's really great, except for the person who is living paycheck to paycheck, right? And so, this fee tax that's placed on them simply because they don't have enough money when you look at it, it's actually pretty rough [laughs]. I look at it, and sometimes I kind of laugh because it's absolutely absurd when you actually look at it on its face where the poorest people you're generating the most profits from. And unfortunately, those fees keep them in the cycle of being poor. And so, it's been really great. Over the past few years, you've seen really great applications or neobanks come up that have acted as, you know, somewhat shields against all of these arbitrary fees, like, hey, no overdraft fees, and no account fees, ever, no monthly fees, and things of that nature, right? But they still aren't solving the other issues, some of the major issues. So, it's really great that I have your debit card. But if you're a neobank, that means I either have to use your co-op ATM network, which is only going to allow me to withdraw cash so many times per month for free, or I have to use some other third-party ATM network. The unfortunate thing about that is they're still paying that fee [laughs]. At some point, they're still going to pay that fee, and when that money is better in their pockets, it's just a little rough. It's a little hard to digest. And so, we wanted to make sure we were doing something about it. VICTORIA: Right. It reminds me of a phrase I come back to sometimes is that being poor is actually very expensive [laughs]. D'ONTRA: It is. VICTORIA: There's a lot of fees, a lot of extra stuff you have to pay for that other people don't. I'm curious: how did you narrow in on this problem? Was it through doing some market research? Was it a personal experience that led you to wanting to work for these types of users? D'ONTRA: Even though JPMorgan was my last, like, corporate job, I went out into the world to be an entrepreneur. Being an entrepreneur is expensive because you got to figure out how to pay bills. And so, one of the side gigs I had is I worked for a hotel in Santa Monica by the name of the Fairmont, and I was managing valet. For anyone who's been to the Fairmont in Santa Monica, it's not for the cheap folks, right? But what would happen is, you know, patrons would show up, and they'd say, "Hey, I'm going to valet my car. I'm going to come back and pick it up." I'm going to go ahead and settle this up. But, you know, where's the nearest ATM so I can give the valet person cash?" And the most often answer was, "Well, there's one inside the lobby of the hotel, and then there's one across this very busy street." Both of these ATMs had a fee of...the one across the street was about $3.75 if you weren't a bank customer, and, of course, it wasn't a national bank. And then the one in the lobby was about $4.75, I think is what the fee was. And so, here's the person who doesn't really carry cash that often being told that they have to pay a premium just to help this person out. And you could almost guess what the most likely outcome was is, unfortunately, that valet person just didn't get tipped. But the thing is, is there was actually a third source of cash, and it was actually in the valet's pocket or at the valet stand. So, there was money there in closer proximity. There just wasn't a mechanism of extracting it. And so, our first look was, well, hey, can we monetize a transaction between, say, the valet stand and this consumer where, basically, the valet stand is selling these folks their cash for much cheaper than the ATM? So, it's going to save everyone time, energy, money, and it ensures that the valet folks get cash in their pocket. I can remember when we initially launched this; I thought it was such a brilliant idea. We created an app in which we would populate a map with all the people around you that had cash on them. So, when you say it out loud, -- VICTORIA: [laughs] Yeah. I could see how that might be problematic. [laughter] D'ONTRA: So, we're super stoked. We're, like, "Hey, we got this app, and it's really great. And, you know, look at all the people here that have money on them." So, we go to submit this thing to the App Store, and the legal team's like, "Absolutely not [laughs]." So, we spent about six months working back and forth with their legal team to come up with a model. And it's somewhat similar to what you see today, where we're sending consumers to regular brick-and-mortar businesses that have spare cash on hand. That's it. Nothing glamorous about that. But the mechanism and the usefulness does some real overall good, not just for the consumers but for the businesses and for the local economy. VICTORIA: Right. So, I was going to ask you, like, what surprised you in the early phases: the discovery process? It sounds like you had at least [laughs] at least one big strategic turn. But I'm curious if there was anything else that came up in your early-stage journey where you realized you had to make a pivot and change up what you were doing based on the feedback you got from users. D'ONTRA: I'd love to be able to tell the story that we got it all right the first time around, but we didn't. I think we almost hit the checklist of things that you should not do. So, like [laughs], one example is you actually really truly shouldn't listen to your customer to some degree, right? So, you have the vision for this thing, but every customer has their idea of how your app should be better or something you should add. And we went through phases where we were adding features then that people just weren't using. You know, it might have worked for, you know, 10% of the user base, but we had spent two or three weeks with the dev team putting in this new feature. And it was somewhat of a departure from the core. It's adjacent, and so we could justify it. So, we did it, but we shouldn't have. So [laughs], then we had to, like, backtrack on that. We had lots of these moments. But I would say one of the most defining moments, and it was actually one of the first ones that came, was this moment in which one of early entrepreneurs' fear is that someone is going to steal your idea. So, we try to, you know, wrap folks up in NDAs, and secrecy, and things of that nature. You know, if you have a really solid idea, like, we all know that it has major potential to change your life. And so, I can remember, you know, we went out, and we pitched this business to a venture capital company. It was very early on. That was my first lesson: people don't steal things that are worthless. And the second being that just because they steal, it doesn't mean they can build it. I can remember, you know, it took us six and a half months to get Spare in the App Store the first time around. And during that time, we had met with this venture capital company looking for investors, angel investors. And it happened to be that this company gave us an offer to buy the company, and we said "No." But then were like, "Hey, why don't you come in and consult us, and let's see if we can work together to do a deal?" And me being super naive at that time, went in, and I said, "Hey, yeah. Like, this is how we would change the app, and this is what we would do." And after two or three hours chatting with them, I had designed my competitor. And I didn't know that until a week later where they made their announcement, and, you know, I had Google Alerts on. And so, this app comes out and, you know, they're posting to see what people think about it. And they had gotten their app in the App Store, same business model, mind you. And I was just blown away [laughs]. Like, I think, at that time, I think I lost all composure. I was, like, sick to my stomach. I was furious. When you asked about, like, the major pivot, it would have been in, like, my mindset because I went in thinking that we have this really great idea and how could anyone want to take something from an entrepreneur because starting is tough enough, especially the people that fund this stuff, right? And [laughs] I learned that, no, opportunities are opportunities, and people take them when they can. And the bigger you become or depending on where your industry is, people are just looking for a shot. They're looking for an opportunity. No one really cares whether or not they're copying someone else's tech, right? If you were destined to do it, you would do it, and you would do it well, and you'd be one of the top ones to do it, right? That was a major change in how I saw this journey, which allowed me to kind of reframe what we were doing and how I was approaching the market, how we collected data, how we dealt with our consumers, and how we ran our business in general. And then, we had to go in and pivot back to the conversation around the customer. So, we go back, and we're going back to build this thing. And so, at that time, I'm feeling, okay, I have to, like, do any and everything I can once we're in the App Store to get users and retain them. And that's when I learned the lesson of, like, don't listen to all of your users. Like, know what your thing is, and do that thing really, really well. And try not to build features that aren't central to your core because, honestly, that can just get you in a lot of trouble. And you can waste a lot of time for no reason. But I think the most important thing out of that is listen to the data, the information, and what I mean by that is where people go on a webpage, or where they go in your app, where they spend the most time. Listen to those things, and pay attention to the data, and somewhat become obsessed about utilizing the data to make your decisions. I think that'll save everyone a bit of heartache and, you know, pain as they go down that journey. VICTORIA: Yeah, I really love that. There's a couple of, like, interesting points. I feel like when you said it can be daunting, like, oh, there's a million apps in there that already do this or, like, somebody else has already started this. Like, sometimes that means, well, it's a good idea because clearly somebody was willing to try and put it together, and they found a market. But you can always do it better, and you can always have a unique angle and try if you think there's a strong enough idea. And I'm curious to, like, get more into, like, the data question and understand what do you use to understand how people are behaving in your app? And kind of metrics you look at to see how you're tracking and whether those are, like, key success measures or other ways that you think about that data. D'ONTRA: For our application, you know, our KPIs were pretty simple very early on. It was like, do we have, like, the keywords that people respond to to find the application? And is it cash? Is cash the keyword? Is ATM the keyword? How do people find us, ultimately, at the end of the day? Because if you can solve that, solving what keywords are most attractive to your company, then what you're going to be able to do is organic traffic is going to be a lot easier to come by. So, you don't have to spend a whole lot of money trying to get advertisements. There's going to be natural search traffic that drive people toward your platform. In addition to that, it was really paying attention to where the customer complaints were coming from because that told us a lot about the application. Even still, today, we have one very consistent customer complaint that, like, the unfortunate thing is, like, it's really difficult for us to solve this thing because it's actually more in the hands of the business than it is us. And that major customer complaint is when I went into this active location, the person at the cash register didn't necessarily know what I was talking about, and there's a myriad of different reasons for that. But the primary one is that these locations typically have high turnover for the person that's working at the counter. And so Spare has to be an integral part of their onboarding this person so that when someone walks off the street, they can get the service that they need. To some degree, listening or paying attention to the feedback that you're getting about the effectiveness of the service or being able to deliver the technology is actually a very useful data point. In addition to that, looking at where your app is available in cross-section with where the people are that are going to use your app. And this is one of the lessons, I think, we learned the hard way, where, you know, we came out the gate and said, "Hey, anybody and everybody can use this app. It doesn't matter if you're in New York, if you're in Texas, Midwest. It doesn't make a difference, right? Any and everyone can use it." And the unfortunate thing is, when you do that, like, you're going to new users, which is really fun. It starts off that way. So, you go out, and you get merchants and things of that nature. And the mentality that we used was, well, we'll build it. The users will come, and the users will tell us where the businesses are or where we need to place businesses. So, we had a new person or a group of individuals show up in downtown Los Angeles. It was like, okay, cool, there's a concentration of people in Downtown LA. Let's go make sure we put businesses there. Well, that's faulty thinking in and of itself. Even though you're getting the data points and the useful bits of data, you're actually doing it in pretty much, like, the wrong order [laughs]. We didn't really realize that, and Spare was my first tech company. And so, you know, when you think about things like that, like, you think, oh, users, they're important. But how you get them, and how you service them, and when you service them must be a strategic plan. You have to have that process thought out so that the user audience follows your plan, not you responding to them or following their informal plan. VICTORIA: Yeah, that makes sense. And I love that, you know, focusing on the users and really focusing, like, on all of their unique needs like location [laughs] and other things like that. And I talk about that, you know, in my role as managing director at thoughtbot, I work on our DevOps and platform engineering team. I often talk about it in terms of, you know, very early in the process; you know enough about your user to tell you a lot about what their needs are going to be like on the infrastructure side, like their regional location, the sensitivity of the data, you know, that can tell you a lot about what you need to build [laughs]. So, I'm curious, you know, you're working on a financial app here. Have you also had to consider that from a regional perspective and from an infrastructure perspective how that affects your users? D'ONTRA: Going into COVID and how we got there, was that we thought we were actually doing really well, right? So, we officially launched our platform to the marketplace in Q4 of 2018. And we did well for the initial launch without any marketing. And then a year later, we had done 3x the volume and had a strategic partner in place that would have grown our network by 30 times by the end of the next year, you know, we were moving. And then COVID came along, right? In which, you know, huge event that no one planned for. It kind of put the company on halt while businesses were shut down, and we lost about 98% of our network at that time. So, we had to go back to the drawing board and kind of, like, figure out, well, one, if this company is really truly something that we know that there's a thing, we're going to continue to build it, but let's do it better this time around, like, what did we miss the first time? And the first place that we went when we were trying to make this decision is we went to look up, like, cash effectively, like cash in circulation. And to our surprise, actually, there was more cash put into [laughs] circulation during COVID than there was at any other time in the past, like, decade, and so that was shocking. And so, we said, okay, cool. We know that cash is in circulation, perfect. Where is cash in circulation? And in addition to that, where should we start with the base of our technology? And how do we want to reconfigure this? And to be honest, we need help. So, you know, we applied to Techstars, and we were super fortunate that we got into the Techstars Anywhere program. I think it was a lifesaver and a reboot for us and the company primarily because, you know, during the pandemic, we had lost, you know, over 70% of the folks that worked for the company at that time. So, going through that program helped us rethink a lot about strategy infrastructurel...how exactly we need to rebuild and reconfigure the company for success this next time around. I think very early on, you know, we were just trying to do the business. We were just doing it rather than actually strategically building it. You know, that's the major difference between where we were versus where we are now is that everything that we do now is more methodical. When we look at, okay, where do we build merchant networks? Well, we're building them in a very strategic location. That particular location has this value to not only us as a company, the merchants in that area, but also the user base. When we were able to take this more strategic position around, you know, how exactly we're building this business, we were actually able to see much larger opportunities that have always been there, but we just didn't see them. And so [laughs], I'm super grateful for, like, us kind of doing that recalibration because we were able to build a business that is ten times bigger than we initially thought that we were building. VICTORIA: That's super interesting. So, yeah, like, pre-COVID, you're like, we'll get users, and then we'll figure out where to build. And then you had to, like, go through this full recalibration and focus on strategic regions, and that really opened up more opportunities and more growth than you had expected. Mid-Roll Ad: As life moves online, bricks-and-mortar businesses are having to adapt to survive. With over 18 years of experience building reliable web products and services, thoughtbot is the technology partner you can trust. We provide the technical expertise to enable your business to adapt and thrive in a changing environment. We start by understanding what's important to your customers to help you transition to intuitive digital services your customers will trust. We take the time to understand what makes your business great and work fast yet thoroughly to build, test, and validate ideas, helping you discover new customers. Take your business online with design‑driven digital acceleration. Find out more at tbot.io/acceleration, or click the link in the show notes for this episode. VICTORIA: What does success look like for you six months from now or five years from now? D'ONTRA: So, six months from now. We're hitting this hot streak with new clients and things of that nature. And we're going out, and we're pitching contracts that are bigger than I ever thought we would be able to pitch, honestly. And sometimes when I see the zeros on the proposals that we're sending out, there's part [laughs] of me that's like, oh, they're never going to say yes to this thing, but, one, they are, which is still shocking, even though we've gotten a few of these in. And six months from now, I just want us to be doing it right. I know that sounds so arbitrary, and it sounds, like, so whimsical. But there are so many things that we're adjusting to in the marketplace and with our tech. Some of this is kind of new frontier for us. But what I would like to have happen is for the results in the next six months to indicate that we're doing it the right way and meaning that we have clients sticking around, we're still getting contracts signed, the network is growing, consumers are actually getting their needs met by our technology, and the company is growing at a rapid pace. That's what I'd like to see. And granted, you know, we've, in the past, you know, few weeks here, we've doubled the size of the team, which is something that feels really great. But I want us to not lose sight of making sure that the team itself always has a common goal in mind, even as we're growing. And whether that's six months from now, 2, 5, 10 years from now, I want that to kind of be the core of the expectations of what I want this company to be able to do and to deliver. VICTORIA: That's exactly the right attitude to have [laughs], right? It's like I want it to work. I want us [laughs] to, yeah, be successful. I think it all makes sense. You know, it's easy to come on a podcast, like, you know, you're eight years into the startup now, and you're starting to see some success. And it's like, here's how I did it. Everything sounds great. So, I'm glad you've also shared some mistakes or some things that you maybe would have reconsidered or done [laughs] differently before. I'm curious: if you could travel back in time to when you first started, what advice would you give yourself, now that you've had this experience, to set your mind right from the very beginning? D'ONTRA: Oh God, there's so much. There's so [laughs] much. One of the major things that I would do differently is I would read more. And what I mean by that is there are lots of lots of people that have been here in this position and done that thing already. I think in the past year, I would say probably one of the most influential books that I've read is Zero to IPO by Frederic Kerrest. And I happened to listen to it in Audible. But when you talk about, like, just things being pivotal, or like [laughs], going, "Oh, that makes sense," yeah, you get that because being an entrepreneur isn't new. And there are folks that have already kind of cracked the code in some regards. So, if you don't have the existing network around you already, go get the materials. Go read the books or listen to the audios of people who have been there, done that. It's going to save you so much time. So, that would be the number one thing that I would change is I would really truly read more and ingest other people's experiences more, and reach out and get mentors and advisors as you're going down this journey. The second thing that I would do is–it's important to move fast when you're building a company. It's important to respond to the market and all that stuff. That's all super important. That's how you live or die, right? You treat it like there's a fire behind you, and you have to lead it. You have this really hot thing. You've got to be in front of it always, or you'll lose it. And sometimes what we miss is we miss the opportunity to do it faster or better by just slowing down just a little bit. And what I mean by that is, like, I mentioned earlier about looking at the data and things of that nature. There may be things in the data that are making suggestions that you should go a different direction. But because of how you've built this thing, you and your co-founders, and how you guys have built these things in your head, that piece of data may not seem like it's very relevant. Sometimes, it's good to take a breath and take an assessment of where you're at. So, when you're with your team, whether you're setting this up monthly, quarterly, whatever it is, make sure that you're taking some time to make sure that you guys are aligned around where your company is, the industry is, and the signs that you're getting inside the space that you're operating in. It's going to save you a lot of time. And I think the last thing that is probably the most important is for those out there who are listening to this that are CEOs, one of my board members/life mentors/ CEO mentors, a friend, and almost like a father figure to me at this point, one of the things that he said to me and that I've never gotten out of my mind is that the CEO position is the loneliest position inside of an organization. And the reason why is even though you may start a business with your friends or people who aren't your friends, whatever it might be, whatever those relationships might be, those folks will never quite understand what it's like to sit in your seat because everything must end with you. It has to. Every successful organization is going to rise or fall by the person that sits at the top. And because that burden is so heavy, oftentimes, we don't want to go and talk to people when things are going bad. We don't want to admit when, like, hey [laughs], this thing that we've sunk all these resources into isn't really working. And just the sheer pressure of being that person sucks sometimes. With that being said, take care of yourself and your key relationships. And I'm not talking about key as in, like, strategic. I'm talking about the people that love you. Make sure even though you're going down this journey, you're making time for your friends, your family, your significant others, your kids, whatever it might be. Because business stuff aside, and we're all chasing the–Man, this is going to be really successful one day, and I'll be able to change everyone's life. Sure, we're all chasing that. But there is a now moment. There is a person right now that might want your love or your attention, and do not rob them of that. Make sure that you're still making time for those things that are important. Because you could very easily start building a business and five years later, look up and go, oh, this thing didn't work. And then turn around, and there's a wasteland of relationships that you just didn't pay attention to. That's not worth it. So, make sure that you're not only showing, you know, the folks that support you some love but show yourself love by still nurturing those relationships. VICTORIA: That reminds me I heard something about like, your rest ethic should be as good as your work ethic. And your rest ethic includes that time that you spend with family, or whether it's your religion, or your hobbies, or anything like that that makes you feel whole and like yourself, which I know can be a difficult thing to do when you're balancing starting a new business and thinking about the growth and the future all the time. So, I really appreciate that. You know, you mentioned mentorship and these networking and relationships. Bringing it all the way back to Start Up San Diego Week, I'm curious if you have thoughts on how founders could get the most out of those types of events. And what draws you back to Startup San Diego or startup weeks in general? D'ONTRA: Just as a caveat to all this, even though I'm on the podcast and stuff like that, and I'm sure if you Googled my name, you'll see that I've been on TV and stuff, I generally don't like networking [laughs]. I'm a major introvert. So, like, when you put me in an event like that, it's very hard for me to talk to people. Like, when we met, it seems that would be contrary to what I'm saying because we were strangers, and I came over, and we started chatting and stuff like that. And by and large, like, that's not always, like, an easy thing for me to do. The reason why I'm saying that is that if you're that kind of person, do what you have to do to be more extroverted because sometimes that extroverted or that more open or welcoming side of you will allow for spontaneous interactions to occur. And so, when we think about events like, you know, Innovation Week or something like that, there's a lot of opportunity for you to either meet people that are on your journey or a similar journey like you who've been there done that, or even just to offer a different perspective. And if you're in a place where you're open and constantly seeking, amazing things can happen, right? You could end up with your next co-founder. You could end up, you know, with your next investor. Or you could end up talking on a podcast with a stranger that you met just a few weeks ago, right? So, anything can happen. Keeping yourself open to the opportunity and the ability to extract as much value as you can out of those events. It's really interesting to kind of have your pulse on what's going on, even if it's outside your industry. We're a FinTech, but I go, and I pay attention to things that are going on in aerospace or in health because it's always good to, one, not completely have yourself submerged in just your industry, even though that might sound really great. People like folks that can talk about a myriad of different topics [laughs]. So, it might be useful if you can go and have a chat with a stranger about, you know, what's the latest in aerospace, right? It gets you out of the brain drain of what it is that you do on a daily basis. But also, you get to learn some new things and cultivate some new relationships. VICTORIA: I love that. Yeah, I listened to...I think it's Happiness Lab episode where they talk about random conversations with people those, like, sparks of innovation or things like ideas you never would have thought of if you hadn't run into this random person [laughs] and talked to them for five minutes about, you know, what they do in health tech, or what they do for their consumer product that they're building. So yeah, I think that's great. And I've been excited to be here in Southern California for the last three years and starting to grow that network and meet people like yourself who are doing really interesting things. I'm curious if you have any questions for myself or about thoughtbot, or the podcast, or anything. D'ONTRA: Yeah. So, you say that you've been here for three years. Tell me a little bit about your journey, how'd you get here, and why you chose the podcast life, right? As one of your many things. VICTORIA: That is one of my many things, right? So, I grew up in Washington, D.C., And my career was in tech and civic tech. I was working for big three-letter agencies and some pseudo-federal banks like FDIC, and Fannie Mae, and PBGC, all the acronyms all the time. And we got an opportunity in early 2020 to move here for my husband's job. And we moved out here, and I decided to take a switch out of the federal space and get into more commercial consulting. And I was lucky enough to find thoughtbot; they had a position that just looked great for me. And when I joined, you know, we have an internal collaboration thing called Hub that I think our CEO wrote and writes with the other people. All the developers on our team all contribute to it. But he posted a message about this Giant Robots podcast and if anybody wanted to be a new co-host. And I was like, "Sure, I've done a little podcasting here and there, and I have a microphone, so I'm ready to go." And little did I realize just how popular the [chuckles] podcast was. And it ended up being a really great avenue for me to meet people and, learn more about their stories, and build relationships in a way that has been really impactful and meaningful. And like I said, you know, you never know how someone you meet might help you [laughs]. So, sometimes I'll interview people, and I'll get an idea about something that is, like, exactly relevant to the work that I am doing that week, just total kismet however it came about. So, that's how I got into podcasting and how I'm in thoughtbot and here in Southern California. And so, I'm super lucky that I live in a place where there's lots of events going on all the time and lots of great people to meet. Between LA and San Diego, you could go to a different event every single day, probably [laughs], and meet people who are working on cool stuff. So, my background was really in operations and maintenance and taking federal agencies into more modern practices with digital services, and agile development, and DevOps. And now I'm taking kind of a similar lens but to commercial partners who are much faster and can make change quicker. And, in some cases, are doing things in even cooler ways than I could have thought and trying to think about how to move them forward with their infrastructure and how they deploy software. D'ONTRA: That's fascinating. And, you know, it's difficult to be in Southern California, right? New events every day. VICTORIA: And then yeah, I'll go walk my dog in the morning-- D'ONTRA: [laughs] VICTORIA: And people are out there surfing. And I'm like, I could surf all day. I don't have to work [laughs]. D'ONTRA: Right? VICTORIA: But I do. I got to work. D'ONTRA: It feels like the world of limitless possibility, right? [laughs] VICTORIA: Yeah. You almost feel, like, a pressure. Like, everyone else is starting their own company. Why am I not starting my company? Everyone's doing cool stuff all the time. So, you get motivated that way by being around a great group of people who are...everyone is very happy and sunny and [laughs] for the most part, the people are so nice. D'ONTRA: Definitely a departure from the East Coast, right? And, like, I'm sure you came here with, like, that hustle mindset, where you're like, got to get it done, which is probably why you do, like, a million things. But then also, you have all of these people [laughs] that, like, I don't know, like, cares to the wind when they need to, right? Although you've got lots of successful people. But, sure, like, more or less down here, it's like, hey, you know, like, let's live life first and [laughs] make the dollars second. VICTORIA: It's very casual. I got rid of all of my blazers. There's no more of that anymore [laughs]. People when they found out that I was moving to California, they were like, "That makes sense for you [laughs]," like, just the general, like, vibe. D'ONTRA: [laughs] VICTORIA: And I'm a rock climber. So, they're like, of course, you're going to go somewhere where the outdoors is prioritized, yeah. Versus when you live in D.C., it's like the news is happening to you. D'ONTRA: Yes [laughs]. VICTORIA: And it's very, very close. So yeah, it's interesting. I love it, though. And it's cool to take experience from that and then apply it to this world and how people might think about stuff. So, I was worried that, like, my experience might not translate, but it has. It's been very helpful [laughs] in some cases, right? Is there anything else that you would like to promote today? D'ONTRA: Yeah, so, you know, maybe for a future conversation, but in line with, you know, your background and what you're talking about, I would love to have a discussion around CRA, the Community Reinvestment Act, for those who don't understand the lingo, right? Because Spare's latest, like, golden nugget that we've really been just, like, kind of moving on and we're talking to federal regulators about is actually our impact on banks and the Community Reinvestment Act. For those who follow the news and know, you know, the time and space that we're in right now, there are some changes that are taking place inside of CRA. And it's very fascinating because when you say about your background of helping agencies kind of modernize things with digital, that's effectively what we're doing with our tech, and we're getting a lot of support from the government. And so, you know, I think that we're really doing some very interesting things that are starting to get some really great attention. We recently partnered with Visa on one of our initiatives, and we're talking to a few other really large organizations and government organizations so that this technology can really be used at a scale, honestly, far beyond what I ever imagined. But when we talk about, like, actually helping people, we're doing it [laughs]. We're doing it in this very unique way, which I'm super stoked about. But maybe we'll have a chat about that in the future. But I think, you know, for those of you that are listening to this and you're curious, you know, what it is that we're working on, feel free to reach out. It's gotspare.com. Feel free to email me: ceo@gotspare.com. I'm generally in that email box every day. Or even just checking out our service, you know, searching Spare on the App Store or Google Play, and just going in and giving it a test drive. And, you know, we're happy to hear your thoughts. And for those of you who are out there that may be looking for a new experience, we are definitely growing this team, and we want to expand as quickly as we can. We have some really aggressive initiatives for the organization over the next 12-18 months. And so, we're not going to do it on our own. I'm super stoked to where we're, like, we're at a place where we're like, we're actively building [laughs]. We're actively moving. And so, if there was a [inaudible 38:44] for us, whether it's supporting us as someone who uses the application or supporting us as a merchant who's in our community. There's lots of value that we're adding that we're turning back around to reach all small businesses. We're really working on combating inflation with our tech. And we've been able to do that, which is one of those really, like, refreshing byproducts of a tech company, or at least of our services. Like, we're actually adding real, true value to folks, and I'm super stoked about that. VICTORIA: That's wonderful, and it's really close to my heart as someone who wants to see tech with purpose and who loves tech solving problems for people, especially groups of people that usually aren't the focus of founders who are trying to turn a quick buck, right [laughs]? The people who have real problems there's a real market there. It is a business, and it makes sense to start solving those problems. So, I'm really happy that you're working on it. Thank you so much for coming in today and being a guest on the show. We will include all those links and wonderful ways to reach out and get connected with you in the show notes. You can subscribe to the show and find notes along with a complete transcript for this episode at giantrobots.fm. If you have questions or comments, email us at hosts@giantrobots.fm. And you can find me on Twitter @victori_ousg. This podcast is brought to you by thoughtbot and produced and edited by Mandy Moore. Thanks for listening. See you next time. AD: Did you know thoughtbot has a referral program? If you introduce us to someone looking for a design or development partner, we will compensate you if they decide to work with us. More info on our website at: tbot.io/referral. Or you can email us at referrals@thoughtbot.com with any questions. Special Guest: D'ontra Hughes.

After 2022's rollercoaster of soaring interest rates and plunging investment returns, sponsors of single-employer defined benefit plans face a key choice as they calculate the 2023 variable rate premium they'll pay to the Pension Benefit Guaranty Corporation (PBGC). Milliman pension actuaries Casey Baldwin and Ryan Cook spoke with Nina Lantz about using the full yield curve, not being afraid of the five-year lock-in, and how switching from the alternative calculation method to the standard method can mean the difference between a $100,000 premium and a premium of $1.7 million.You can read the episode transcript on our website.

Given the recent headlines and failure of two banks, Stephanie and Kevin felt is was time for a high-level overview on the government insurance programs that serve as backstops by protecting you from the potential failure of financial services companies.   Listen in as they break down the most important acronyms within the alphabet soup of federal government agencies.   They discuss the FDIC insurance program, how the SIPC protects investors should a firm go belly-up, why pensioners (and pensioners-to-be) need to familiarize themselves with the PBGC, and how to go about the best state insurance program for your goals!   Key Topics: What is the FDIC? (4:16) Limits on FDIC coverage (8:21) Defining “ownership category” (10:48) “What can I do to have more protection on my money?” (14:43) What is the SIPC? (16:32) Defining “custodian” (19:15) What the SIPC protect you from (and what it does not) (21:20) Defining “separate capacity” (24:28) What is the PBGC? (25:52) State insurance programs (27:00) Our closing thoughts (27:53)   Resources: Take Back Retirement Episode 29: How Much Cash Should I Have and Where Should I Be Putting It? Here's a comprehensive description of FDIC deposit insurance coverage for the most common account ownership categories: www.fdic.gov/resources/deposit-insurance/brochures/insured-deposits SIPC website for more details: https://www.sipc.org/ - see the “For Investors” section     If you like what you've been hearing, we invite you to subscribe on your favorite platform and leave us a review. Tell us what you love about this episode! Or better yet, tell us what you want to hear more of in the future. stephanie@sofiafinancial.com   You can find the transcript and more information about this episode at www.takebackretirement.com.   Follow Stephanie on Twitter, Facebook, YouTube and LinkedIn.  Follow Kevin on Twitter, Facebook, YouTube and LinkedIn.

A steady stream of cash flow is one of the most valuable things you can have, both before and after you retire.  If that income is guaranteed by some entity -- the federal government, the PBGC, or the claims-paying ability of an insurance company -- then so much the better.Pensions and Social Security are two forms of guaranteed income that people receive usually after they've retired. They form the basis of your financial plan and help determine how much extra income (if any) your portfolio will need to provide for you. In other words, the more guaranteed income you have, the less you'll have to rely on your savings.Why is this so important?  Find out from podcast host Johnny Dean and his guest, "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!

In this episode of Engage, host First Officer Ryan Argenta sits down with Scott Bowles, John Doherty, and Dan Fusco, the experts of the Retirement & Insurance Committee to discuss a variety of topics including 401(k) contributions, ROTH conversions and recent changes to ROTH conversions for Company contributions, how you no longer have to "race" the Company to max out your 401(k), potential tax implications of multiple retirement income sources, PBGC, Market-Based Cash Balance Plan (MBCBP) benefits and tax implications, ALPA-sponsored insurance programs, and other R&I nuggets. The Fine Print: This podcast does not constitute an official position or advice of the Air Line Pilots Association or the Delta Master Executive Council. The information provided in this podcast does not, and is not, intended to constitute legal advice, tax advice, or financial planning expertise. All information and content presented are for general informational purposes only. (Recorded October 5 and December 7, 2022)

About Gene Kalwarski and Cheiron: For more than 30 years, Gene Kalwarski has been one of the nation's leading actuaries to multi-billion dollar jointly-trusteed pension and health and welfare funds in the Taft-Hartley and public sector arenas. He is an industry leader in the development of PC-based financial applications and interactive analytical tools that empower fund trustees to understand evaluate and strategize alternative solutions to their financial challenges with respect to pension funding, escalating healthcare costs, and investment strategy. Gene's ideas and achievements have been chronicled in many industry publications, Money magazine, and at the annual Business Week CFO Forum. He specializes in creating innovative real-time simulation decision tools for financial executives facing major strategic decisions with respect to pension funding, investment strategy, and health insurance. His clients have been primarily multi-billion dollar funds of major corporations, states, Taft-Hartley funds, U.S. federal agencies, and the governments of foreign countries. Gene applies a "hands on" approach in designing and developing evolving technology applications for clients. Staying actively involved in this dynamic field allows him to incorporate his depth of knowledge and experience to the applications being developed, enhancing them to be more effectively useful from an upper management perspective. In addition, he has extensive experience presenting actuarial concepts to large audiences who have little technical expertise. Gene has testified on several occasions before U.S. Senate Committees and regularly testifies before state legislatures and boards of trustees on behalf of the many state-wide pension funds he represents. After more than 21 years at Milliman where he established the firm's Washington office, in 1984 he became the firm's youngest Equity Principal. By 1990 he was the youngest Equity Principal to serve on the firm's Board of Directors. He joined Cheiron in November 2002. Prior to working at Milliman, Gene worked for two years at Towers Perrin. He began his actuarial career at the Pension Benefit Guaranty Corporation or PBGC where he spent nearly five years. Cheiron (pronounced ki´• ron) is an employee-owned, full-service actuarial and financial consultancy, advising a national client base of public employers, Taft-Hartley plans, non-profits and corporations, from offices in Washington, DC; Charlotte; Chicago; Philadelphia; New York; Portland, OR; Los Angeles; San Francisco; and San Diego. Our primary business is in the pension and health areas, where we help clients identify, measure, and monitor financial risks, and assist them in addressing those risks. At the heart of these services is our proprietary line of sophisticated "X-scan"​ modeling tools that allow clients to see, in real time, the nature and degree of financial risk they face, and determine when deeper analysis is needed. We stand behind our work, serving our clients with integrity, responsiveness and objectivity. Our only business is providing analysis and advice. We do not ask clients to accept limitations on our liability for the quality of our work. Our advice is objective, serving only our clients interests and will not be affected by conflicts with other corporate alliances, outside advisors, external oversight entities, or between management and labor. Although Cheiron opened its doors in 2002, our seasoned consulting staff averages more than 24 years of experience. Our consultants have earned a strong national reputation for high professional standards, innovation and dedication to solving our clients'​ problems.

How do you pick between a lump sum payment from your pension and an annuity? A lot of that decision depends, but if you want to have control over your financial assets, a lump sum is often the better option. Find out when you should take a lump sum option instead of an annuity, why insurance is one of the most important pieces of the puzzle, and how to ensure your family doesn't lose out either way.  The choice between a pension annuity and a lump sum often comes down to which provides the greatest income, but that's not the only factor you need to consider. We're seeing fewer and fewer pensions than we did 20 years ago because of the systemic issues with defined benefit programs. They are often replaced with defined contribution programs like 401(k)s. People used to retire at the age of 65 and could expect to live another 10 to 15 years on average. Today, people are retiring sooner and living longer than ever, and that is making the traditional approach to retirement unsustainable. Historically, pensions aimed for between 4.5% and 7.5% to calculate their projection of benefits. With interest rates being below that range for decades and with life expectancy being lower in the past, the math worked out, but that's no longer the case. According to an article in the Daily News, nearly 1 million working and retired Americans are currently covered by pension plans that are in imminent danger of insolvency. Pensions are insured similarly to bank accounts by the Pension Benefit Guaranty Corporation (PBGC), but according to Heritage.org, they found that for promised benefits of $24,000 a year, they're insured up to $12,870. The PBGC has the same problem as the FDIC. The FDIC has billions and reserves, but has exposure to trillions of dollars in bank accounts. The promise of insurance for both pensions and bank accounts is not mathematically supported. If the PBGC becomes insolvent, the promise goes from $12,870 down to about $1,500. If you are relying on an annuity payment from a pension, you're placing a lot of trust in the pension calculations. And if the calculations are off, there's not enough insurance to cover the loss. The alternative to the pension annuity, the lump sum payment, gives you much more control over the future of your finances. Not all pensions are destined to go broke, but the risk should be taken into consideration when constructing the income streams that will support you for the rest of your life. A lump sum payment gives you control over your financial assets. Your income needs can fluctuate in retirement and the control of the assets backing your income gives you flexibility to meet your income needs. In the event that you predecease your spouse, they gain control of the asset. Your heirs can also inherit the asset, which is not the case with a pension annuity. Not all pensions offer a lump sum offer. In that case, the goal is to move as much of it into your control as possible. A single life annuity option is often your highest monthly benefit and is the quickest way to get the most from the pension in the shortest period of time. The downside to electing this option is that it can leave your spouse with an income shortage, which is why your spouse will have to sign off on it. In that case, you should buy insurance either within the pension or outside of it. With insurance outside the pension, you would accept the single life benefit taking the highest annuity payment then pay a premium to an insurance contract to pay a lump sum to the surviving spouse or the children if you die. Inside the pension, you take the lower annuity amount to ensure your spouse continues to receive the benefit after your death. Buying insurance within a pension that has a cost of living adjustment also comes with additional costs which compound over time. For most people, this means you're paying an ever increasing monthly premium for a decreasing benefit. It's critical that the type of policy you purchase and the amount of the insurance obtained are in alignment with what you need to protect your family. One misstep in this process can leave your policy at risk of lapsing or expiring, leaving your spouse vulnerable to a significant income gap.     Mentioned in this episode: pensionelectionguide.com questionsforbrian.com

A steady income is one of the most valuable things you can have, both before and after you retire.  If that income is guaranteed by some entity -- the federal government, the PBGC, or the claims-paying ability of an insurance company -- then so much the better.Pensions and Social Security are two forms of guaranteed income that people receive usually after they've retired.  While many (if not most) people will have a Social Security benefit paid to them, pensions are less common today than they used to be.So in absence of a company pension, how might you create a form of guaranteed income?  Find out from podcast host Johnny Dean and "Professor" Rick Plum, CFP® on this week's episode of Managing Your Financial Future!

Even casual observers know that, over the past several decades, the nation's retirement system has evolved from a predominantly defined benefit system to a predominantly defined contribution system. That said, there are still nearly 47,000 defined benefit plans in the United States, (half of which are insured by the Pension Benefit Guaranty Corporation, or PBGC), covering almost 33 million people and totaling more than $3.2 trillion in assets. On this past New Year's Eve, the PBGC's Participant and Plan Sponsor Advocate, Connie Donovan, issued the 2021 Annual Report of the Participant and Plan Sponsor Advocate, highlighting the agency's successes and improvements, as well as areas of lingering concern. (See the report here: https://www.pbgc.gov/documents/2021-annual-report-participant-and-plan-sponsor-advocate) In this episode, Donovan speaks with host Jason Hammersla about the customer experience with PBGC, including what she has characterized as “internal administrative issues” within the agency.

"A full breakdown of the Pension Benefit Guarantee Corporation and it's operations." - Host Wayan

Joseph Fisher v. PBGC

In this episode of Human Capital, we talk with Charles Millard, the former director of the Pension Benefit Guaranty Corp., who’s now a senior advisor to asset management firm Amundi Pioneer. He discusses why House Ways and Means Committee Chairman Richard Neal, D-Mass., and Kevin Brady, R-Texas, introduced their big bipartisan Securing a Strong Retirement Act of 2020 just a week before the election. “There’s a continuing resolution funding the government that only goes through Dec. 11, so there will be some kind of lame duck session.” Millard addresses the bill’s chances of passage during the lame-duck session and notes one an area of the bill that he viewed as slightly disappointing. “It did not do anything about auto-IRAs… (insert @ 3:11) there’s 50 million working Americans who have no workplace retirement plan or solution. This bill does encourages small businesses to put 401(k)s in place.” Millard also provides an update on the Butch-Lewis Act and its treatment of multi-employer plans as well as the “inherently struggling” PBGC.

K. Lewis v. PBGC

This week on Financial Philosophy, we learn more about pension plans and how they could be a valuable part of your retirement plan. James discusses how the PBGC steps in when necessary, and ultimately, why it may be advantageous to have a pension plan so that you can make informed decisions as you prepare for retirement and consider what suits you and your finances.   Financial Philosophy is a show/podcast sponsored by Falcon Wealth Advisors and hosted by James Lewis, CFP® that is dedicated to the whole of financial planning. The goal is to breakdown the complicated financial industry and decisions into easily digestible segments for most anyone understand.   Falcon Wealth Advisors is an independent-minded wealth management practice located in the Kansas City metro.  Our team of 11 professionals specializes in retirement planning for individuals.  We help our clients make important decisions around when to retire, social security, health insurance, tax planning, and many other financial planning topics.   In addition to helping our clients plan for a successful retirement we also implement investments solutions.  We believe that what sets us apart is our philosophy to avoid investment products and instead buy/sell individual stocks, bonds, and options for our clients.  We do this to eliminate the middle man which we believe increases control and transparency, and decreases fees.   Visit Our Website https://www.falconwealthadvisors.com/   Listen to our Podcasts https://www.falconwealthadvisors.com/content.html   We're Social! https://www.facebook.com/FalconWAdvisors/ https://www.instagram.com/falconwadvisors/ https://twitter.com/FalconWAdvisors https://www.linkedin.com/company/falcon-wealth-advisors/

In today's Federal Newscast, the Justice Department won guilty pleas from the former director of procurement for the Pension Benefit Guaranty Corporation and the president and CEO of a government contracting firm for bribery.

On this episode of Retirement Starts Today I want to share with you the retirement questions I received through my Friday Office Hours. Office Hours is an online space where I am available to answer any financial questions that come to mind. Over the past 2 weeks, we’ve had a great turn out with about 50 people joining each session. If you want to come to Office Hours make sure you are signed up for my Every Day is Saturday newsletter to get the invite. The next Office Hours session is on Friday, May 1 at 10:30 am CDT. Listen in to hear these retirement questions from my Office Hours session on April 24, 2020. Outline of This Episode [1:22] The solvency of the PBGC [7:00] Do I still recommend delaying Social Security until age 70? [15:34] How will the new money being pumped into the economy affect inflation? [18:15] Tax diversification [22:14] Should deflation be a worry? What do I think about the solvency of the PBGC? The PBGC or the Pension Benefit Guarantee Corporation is a private insurance company that insures pensions. This corporation is a safety net for private pension plans. Many people are choosing to cash out their pensions in favor of a lump sum. The lump-sum payments are artificially high right now due to low interest rates which and this fact has put extra stress on the PBGC. Whether or not the PBGC remains solvent should not affect your decision to take a lump sum or to keep your pension.  How you should decide whether to take a lump-sum payment or a pension The solvency of the PBGC shouldn’t play much of a role in your decision to take a lump sum or an annuity, instead, you should first consider other factors. First, consider your lifestyle and then do the math, after you have done both of these things then you can factor in whether you think the PBGC will remain solvent. You should really think about how much flexibility you need with your money. If you need a lot of flexibility the lump sum is the right choice for you. But if you are risk-averse then the annuity is your best bet. You’ll also want to factor in your own longevity and how much you value simplicity. Next, you’ll want to factor in the math. Listen in to hear all the factors that you should consider when making this decision. How will the new money being pumped into the economy affect inflation? We have been printing money for years and that should have led to inflation but it hasn’t yet. This also should have led to high gold prices but that hasn’t happened either. None of the things are happening the way the textbooks told us they would. This may be due to technological advances leading to deflation or it could be because the dollar is the reserve currency of the world. Learn how to outgrow inflation by listening in.  A strategy for tax diversification  In an ideal world, you would start your retirement with 30% of your assets in a Roth IRA, 30% in tax-deferred accounts like IRAs, and the last 30% in a brokerage account. This would give you a lot of flexibility to live life how you really want. Unfortunately, most of us don’t have our assets perfectly distributed so we need to consider how we can diversify our assets before we reach age 72. It’s important to figure out what your RMD’s will be and planning your taxes. Find out about tax diversification and the answers to many other questions on this episode of Retirement Starts Today.  Connect with Benjamin Brandt Get the Retire-Ready Toolkit:http://retirementstartstodayradio.com/ Follow Ben on Twitter:https://twitter.com/retiremeasap Subscribe to Retirement Starts Today on Apple Podcasts,Stitcher,TuneIn,Podbean,Player FM,iHeart, or Spotify

This week, Paul and Tal chat with the Bob Westbrooks, the Inspector General from the Pension Benefit Guaranty Corporation (PBGC). We discuss the OIG's approach to its own ERM program as well as efforts made to support the development of ERM at the Corporation.

On this episode, Paul chats with Nicole Puri, Risk Management Officer at the Pension Benefit Guaranty Corporation, about the importance of an independent role for a CRO, how to demonstrate the value of ERM to agency stakeholders and the interaction between the CRO and Inspector General.

The Pension Benefits Guaranty Corporation may be small, but it has a large number of dollars and data under its stewardship. An analysis by the corporation's inspector general found the PBGC's cybersecurity program to be ineffective. That's not as bad as it sounds, though. Joining me with details, inspector general Robert Westbrooks.

RETIREMENT HEIST: AMERICAN PENSIONS AND THE ART OF BEING EVILPodcast by (the non-billionaire, non-pedophile, non-dead) Jeff Epstein for Historic.ly, recorded August 16-20, 2019. You can find Historic.ly on the web, Twitter, and Facebook. You can find Jeff at Citizens’ Media TV on Twitter, Facebook, and on the web. Music by Wreck Tech, who can be found on SoundCloud and Spotify.Copy edited by Ben SzioliEditor’s note: page numbers (“[9]”) are provided for those interested in more information on specific statements.In 1999, pension funds at most large corporations were fully funded, meaning they could afford to pay all benefits for all employees, for all time – even if they all lived to the age of 100. On top of this, thanks to eight years of double-digit investment returns, in large part due to the dot-com bubble, many companies were sitting on massive pension fund surpluses: $7 billion at IBM, $20 billion at AT&T, $24 billion at Verizon, and $25 billion at GE [9]. These surpluses were intended to serve as cushions against unforeseen problems at the company or in the stock market, as were soon to occur during the housing crisis of 2008.Companies complained that these surpluses should be freed up to use for “more productive purposes.” They lobbied the government until 1999, when Congress changed pension law so the surpluses could be used more freely [16]. The conditions of the new law were that the pension funds had to remain fully funded and the money taken was to be used “exclusively for the benefit of pensioners.”As thoroughly documented by Ellen Schultz in her book Retirement Heist, this decision was a major factor in the massive incentives for executives to enrich themselves on the backs of millions of retirees, who sometimes paid with their very lives. Draining pension surpluses gave companies many billions of dollars that could be used for unorthodox purposes such as severance for employees who were laid off to keep their pensions from growing. [13-15]. Above all else, however, this money was used to provide executives with lavish performance and exit bonuses [19-23], while benefits for average workers were dramatically reduced or eliminated.Since only the surplus could be drained, companies used a loophole to increase the surplus by lowering their pension funding level. They did this by feigning hardship due to what they said was the undue burden of a growing population of retirees (despite their plans being fully funded!). Companies told their employees that if they didn’t reduce future benefits, the company might be forced to declare bankruptcy, and the employees would lose everything. The benefits were then reduced, resulting in a magically larger surplus.This cycle continued until the funds were nearly depleted, at which point the company could indeed claim bankruptcy, using the remaining balance in the pension fund to pay off company debtors instead of retirees [24].Although this lawlessness existed for decades, the seed from which it grew at high speed was planted around a decade prior. In 1987, accounting standards were established [55] requiring companies to report their pension funds as a liability on financial statements. This meant that taking money out of a pension fund reduced those liabilities and would conversely be reported as earnings – no different than the profit from selling a product. These increased earnings increase investor confidence, which increases stock prices, which in turn results in larger bonuses for executives. Not to mention, the money taken can itself be kept tax- and consequence-free.The earnings can also be used as a tool to hide financial problems with precision. For example, between 2003 and 2010, the major appliance company Whirlpool had three large recalls of defective products [78], resulting in substantial losses. However, instead of reporting a loss, they drained just enough money from the pension fund in order to report modest earnings every quarter.In other words, slowly draining pension fund surpluses allows companies to hide volatility, pretending to the public (including workers, retirees, investors, regulators, legislators, and law enforcement), year after year, that the company is being run perfectly, regardless what actual difficulties it faced. This false perception of stability is then used to justify even more bonuses for executives.So, each dollar taken from a pension fund enriches executives many times over.Retirees have attempted to sue in order to recover lost benefits, but unfortunately, companies can reliably lengthen and postpone the proceedings for decades, until the retiree either gives up or dies. Until that point, the company can keep reinvesting the disputed funds, earning more interest. Retirees’ lawyers also cannot be compensated for legal fees unless a judge approves it on a case-by-case basis, making it difficult for retirees to afford litigation. [161-2]Yet, grotesquely, companies are free to drain their pension fund surpluses in order to pay their lawyers [20], since the lawyers’ services are ostensibly aimed at “defending the pension fund,” which is, legally speaking, “for the exclusive benefit of pensioners.”Finally, pension law does not allow for retirees to be financially compensated for pain and suffering [162]. This means that the worst possible consequence for a company is to have to repay what was originally owed. In Retirement Heist, the author Schultz likens this to being viciously beaten and having your wallet stolen, and the best you can hope for is to get your wallet back.So, since workers and retirees have few legal protections, there is nothing to force a company to do better.While these crimes (some made legal, some not) are disgusting, what’s really disgraceful is the system that allows it to happen. The private pension industry joins the industries of asbestos, tobacco, healthcare, pharmaceuticals, prisons, and many others, as yet another for-profit monster that has known for decades how its actions and inactions have caused, and still cause, the death and suffering of millions.(Above all others, however, is the fossil fuel industry, which threatens untold devastation and suffering for all of humanity, with many of the consequences occurring before our grandchildren even have a chance to live out their natural lives. Yet this genocidal and ecocidal industry is still subsidized by more than a half trillion dollars from the United States government each year.)Our government does absolutely nothing to stop these crimes. In exchange for legal bribes from the owners of these companies (in the form of campaign contributions), our elected representatives look away and shrug helplessly while the monsters prey upon us.Worst of all, as Modern Monetary Theory (MMT) demonstrates, our government could easily protect and provide (pensions and all other basic human needs) for us all. So when a federal representative tells us that they want to help us but they can’t, they are, to be extremely charitable, incorrect.Ellen Schultz’s book Retirement Heist documents the art of being evil; the creativity of evil. It is an endless stream of company after company, each company turning to the one before it, saying, “You think that’s evil? Hold my beer.”My interest in reading this book is not to find solutions to all these pension-related crimes and problems, because they are all symptomatic. Instead, my goal is to understand them as context for a system that has lost its way – and hopefully as incentive to do something about it.Postscript: Seven years later, the problem persistsRetirement Heist was published in 2012. As of 2017, 114 multi-employer pension plans are projected to fail within the next twenty years. In addition, the federal agency that insures all American private pensions says that it will run out of money by 2025 – despite MMT demonstrating that Congress could fully fund the agency and all pensions, for all time.(To start learning about Modern Monetary Theory (MMT), you can find many expert created resources on the web, Twitter, and Facebook.)Disclaimers and corrections regarding what I say in the audioI say “there is no economic reason for the PBGC/the federal government to not be able to pay all pensions for all time.” The word economic should be changed to “financial.” The economy includes money and resources. Financial means money only.Regarding Whirlpool’s recalls, I say they reported a three cent per share gain and then also say nineteen cents per share. To clarify: the loss due to the recall was sixteen cents per share. Whirlpool removed enough money from the pension fund in order to recover that entire loss, plus an extra three cents per share on top. They therefore reported a three cents per share gain.The 1987 accounting rule is mentioned on page 55 in the book. Not 58.When I say “envelopes of cash” during the conclusion, I mean it as a caricature of our corrupt campaign finance system. Speaking literally, the money is in the form of large campaign donations from corporations and billionaires, received either directly or indirectly.Here is the video referenced near the start of this podcast: Get full access to Historic.ly at historicly.substack.com/subscribe

The American pension plan is in flux, but not for the first time in U.S. history. In this episode of Critical Point, Milliman consulting actuaries Kelly Coffing and Becky Sielman discuss why it’s a turbulent time for retirement security in America, and what the next generation of pension plans could – and should – look like given emerging technology and the changing nature of the U.S. workforce.

Since 2015, the IRS, DOL, and PBGC have been paying close attention to how employers locate missing participants, including increased scrutiny of timely payment of required minimum distributions (RMDs) for participants at or near age 70-1/2. In particular, the DOL has undertaken numerous investigations on missing participants as part of its Terminated Vested Participant Project (TVPP). During this episode of Winston & Strawn’s Benefits Blast Podcast, Employee Benefits & Executive Compensation Attorneys David Rogers and David Diaz will discuss this ongoing initiative and how the DOL is challenging employers specifically. They will discuss the DOL investigation process and provide best practices regarding missing participants that employers should take into consideration.

Today's episode is a tragedy in three acts, bringing together three seemingly-unrelated stories: (1) understanding the looming crisis at the Pension Benefits ordonuarantee Corporation; (2) figuring out who Gordon Hartogensis is and why he's about to gain control over potentially hundreds of billions of dollars in assets; and finally, (3) putting together all the pieces to see how President Trump has acted to protect his crony, Treasury Secretary Steven Mnuchin, from potential criminal and civil liability in connection with his management of Sears. Strap in; it's going to be a bumpy ride! We begin in Act I, in which the guys break down the Employee Retirement Income Security Act of 1974 (ERISA), its creation, the Pension Benefits Guaranty Corporation (PBGC), and the developments over the last 45 years that have pushed the PBGC to the brink of collapse. Act II, then, takes over with the recently-appointed International Man of Mystery, Gordon Hartogensis, to lead the PBGC. Who is this guy, and what has he done to inspire confidence that he can right the ship? Listen and find out! Act III weaves these stories together with the ongoing civil lawsuit by Sears against Steven Mnuchin and his buddy Eddie Lampert, who are alleged to have looted Sears's assets, driving it into bankruptcy. You'll never guess who bought those assets in bankruptcy... or, perhaps you'll instantly guess who did. After all that, it's time for the answer to Thomas Takes the Bar Exam #128 involving a crazy fast-food heist involving an imaginary sniper and the drive-thru lane. Did you get it right?? Appearances None! If you'd like to have either of us as a guest on your show, drop us an email at openarguments@gmail.com. Show Notes & Links Check out ERISA, 29 U.S.C. §§ 1001 et seq. You can also read the text and a breakdown of the key provisions of the PPA, which passed the Senate 93-5. For a sad laugh, check out the PBGC's own scant "Who the hell is Gordon Hartogensis?" page. The first person to break this story was Politico's Ian Kullgren, who wrote this article. We first covered the Sears/Lampert/Mnuchin story back in Episode 273, and you can read the Warren/Ocasio-Cortez letter here. -Support us on Patreon at:  patreon.com/law -Follow us on Twitter:  @Openargs -Facebook:  https://www.facebook.com/openargs/, and don't forget the OA Facebook Community! -For show-related questions, check out the Opening Arguments Wiki, which now has its own Twitter feed!  @oawiki -And finally, remember that you can email us at openarguments@gmail.com!

Today I welcome back Marcia Wagner, ERISA Attorney and founder of the Wagner Law Group, to tackle the not so straightforward lifecycle of a 401(k) or workplace retirement plan document.  Logically we start at the beginning on what it takes to create a 401(k) plan document, and move through common steps to maintain a document and things that happen along the journey, and close with terminating a retirement plan.  With several changes in rules, IRS programs and some general confusion in many of these areas, this was a fun and informative conversation that hopefully helps you as much as it did me!  Guest Bio Marcia S. Wagner is the founder of The Wagner Law Group, a certified woman-owned and operated business and one of the nation’s largest and most highly regarded boutique law firms, specializing in ERISA, employee benefits, executive compensation, employment, labor, human resources, personal law (estate planning, family and immigration) and investment management law.    Ms. Wagner has been practicing employee benefits law for over 32 years.  She founded The Wagner Law Group more than 20 years ago and is the Firm’s Managing Partner.  She graduated summa cum laude and Phi Beta Kappa from Cornell University and is a graduate of Harvard Law School.     Ms. Wagner is an authority on employee benefits matters, including qualified and non-qualified plans, fiduciary issues, deferred compensation, and welfare benefit arrangements.  Her experience in employee benefits includes plan design, drafting and preparation, compliance, tax planning and consultation on all aspects of ERISA and the Internal Revenue Code.  She consults with law firms, employee benefits organizations, and corporate and public plan sponsors, and serves as an expert witness in ERISA litigation.   She counsels plan sponsors on qualified plans, 403(b) and 457 plans, multiple employer plans (MEPs), IRAs, employee stock ownership plans (ESOPs), executive compensation arrangements and retiree medical benefits in matters involving plan operation and maintenance, plan terminations, mergers and acquisitions, tax treatment of plan participants, use of life insurance and annuities, and derisking of pension liabilities.     Ms. Wagner also specializes in Title I of ERISA, and has obtained advisory opinions, information letters and prohibited transaction exemptions from the U.S. Department of Labor.  She handles fiduciary matters impacting plan sponsors, investment and other fiduciary committees, investment managers and advisors, recordkeepers, broker-dealers, banks, and other financial services firms.  Ms. Wagner advises clients on the avoidance and rectification of prohibited transactions, the development of compliance programs, and investment policies.  She is a renowned expert in issues concerning pension plan investments and fiduciary issues, and her opinion has been sought by noted authorities in the employee benefits area, including governmental agencies.     Ms. Wagner works on Department of Labor, IRS and PBGC audits of plans as well as of financial institutions that service plans, and has negotiated numerous favorable closing agreements.     She was appointed Chair of the Employee Plans subcommittee of the IRS Tax Exempt & Government Entities Advisory Committee and received that agency’s highest honor.  She is a Fellow of the American College of Employee Benefits Counsel and is the recipient of more than 50 professional honors.     Finally, Ms. Wagner has written hundreds of articles and 15 books.  She is a highly sought after lecturer, and is widely quoted in The Wall Street Journal, Financial Times, and Pension & Investments.  She has been a guest on Fox, CNN, Bloomberg, and NBC.  401(k) Fridays Podcast Overview Struggling with a fiduciary issue, looking for strategies to improve employee retirement outcomes or curious about the impact of current events on your retirement plan? We've had conversations with retirement industry leaders to address these and other relevant topics! You can easily explore over 150 prior on-demand audio interviews here. Don't forget to subscribe as we release a new episode each Friday!

Interview with Courtney Heard (Godless Mom).Investing Skeptically: Sears, K-mart, pensions

Unfortunately, mistakes are made when running workplace retirement plans.  My guest, Marcia Wagner, the founder of The Wagner Law Group brings her over thirty years of experience working on ERISA matters to the podcast today and shares her list of the top 10 mistakes she sees retirement plan sponsors make.  For a little background, Marcia is perennially listed as one of the most influential people in the retirement industry, is frequently quoted in the Wall Street Journal and other publications and regular guest on FOX, CNN, Bloomberg, NBC and other news shows.  You can find out more about Marcia and this episode at 401kfridays.com/wagner.   Back to our conversation today, not surprising, her top ten list is spot on and she does an excellent job explaining the issues, how they happen and probably most importantly how to avoid and thoughts on how fix them if needed.  Along the way, we also have a little fun and share some laughs.  As far as top ten lists go this one makes my personal list top ten list!  Guest Bio MARCIA S. WAGNER has been practicing in the employee benefits field for over 30 years, founded The Wagner Law Group over 20 years ago and is the Firm’s Managing Partner.  Ms. Wagner is a summa cum laude and Phi Beta Kappa graduate of Cornell University  and a graduate of Harvard Law School.  Ms. Wagner is highly regarded for her broad and deep knowledge of the law, flexibility, creativity and sound judgment.  She has been at the very forefront of legal and best practices developments in the benefits arena virtually her entire career.   Ms. Wagner’s experience in employee benefits is wide-ranging and she is recognized as an expert in a variety of employee benefits matters, including qualified and non-qualified plans, fiduciary issues, deferred compensation, and welfare benefit arrangements.  Her experience in employee benefits includes plan design, drafting and preparation, compliance, tax planning and consultation on all manner and aspect of ERISA issues.  Because of her experience and reputation, she has been retained as a legal consultant to other law firms, consulting firms, employee benefits organizations, large corporate and public plan sponsors and as an expert witness in prominent ERISA litigation matters.   As counsel to all types of plan sponsors, she has worked closely on qualified plans, 403(b) and 457 plans, IRAs, employee stock ownership plans, executive compensation arrangements and retiree medical benefits (including 401(h) accounts) regarding plan operation and maintenance, plan terminations, mergers and acquisitions, tax treatment of plan participants, use of life insurance and annuities, and derisking pension liabilities.  Ms. Wagner has also advised on the design and redesign of retirement, executive, and health and welfare plans and engages in ongoing, day-to-day counseling of plan sponsors and compliance audits.   Ms. Wagner also specializes in Title I of ERISA, and she has obtained advisory opinions, information letters and prohibited transaction exemptions.  Her broad and in-depth range of experience includes handling fiduciary matters impacting plan sponsors, investment and other fiduciary committees, investment managers and advisors, recordkeepers, broker-dealers, banks, and other financial services firms.  She advises on the avoidance and rectification of prohibited transaction issues, development of compliance programs and investment policies, and day-to-day compliance issues arising under ERISA and the Internal Revenue Code.   Ms. Wagner has worked on numerous Department of Labor, IRS and PBGC audits of plans and financial institutions that service plans, and negotiated favorable closing agreements with all agencies.   Ms. Wagner was appointed to the IRS Tax Exempt & Government Entities Advisory Committee and ended her three-year term as the Chair of its Employee Plans subcommittee, and received the IRS’ Commissioner’s Award (that agency’s highest honor).  Ms. Wagner has also been inducted as a Fellow of the American College of Employee Benefits Counsel, has an “AV” peer review rating by LexisNexis Martindale-Hubbell indicating very high to preeminent legal ability and integrity and has received over 50 professional commendations and honors.  For eight years, 401k Wire listed Ms. Wagner as one of its 100 Most Influential Persons in the 401(k) industry, and she has received the Top Women of Law Award in Massachusetts and is listed among the Top 25 Attorneys in New England.  Ms. Wagner has written hundreds of articles and 15 books.  Ms. Wagner is a frequent and highly sought after lecturer, is widely quoted in business publications such as The Wall Street Journal, Financial Times, Pension & Investments, is a prolific writer and contributor to the most prestigious journals and periodicals in the benefits area, and has been a guest on FOX, CNN, Bloomberg, NBC and other televised media outlets.  401(k) Fridays Podcast Overview Struggling with a fiduciary issue, looking for strategies to improve employee retirement outcomes or curious about the impact of current events on your retirement plan? We've had conversations with retirement industry leaders to address these and other relevant topics! You can easily explore over one hundred prior on-demand audio interviews here. Don't forget to subscribe as we release a new episode each Friday!  

Is America’s Social Security system bankrupt? Well, not exactly. It is, however, significantly underfunded. No shocker there. What’s perhaps more interesting is that we have the tools to fix the problem right now, says retirement guru Bradley Belt. He knows a thing or two. Belt used to run the Pension Benefit Guaranty Corporation (PBGC) where he was responsible for leading the federal pension insurance program and overseeing a $60 billion investment portfolio. The bigger challenge? Getting flimsy politicians on board. (No shocker there either.) As Belt says in the HedgeyeTV Real Conversations interview above: “Social Security is actually pretty easy to solve from a math standpoint. There are a few levers that you can adjust that actually most reasonable, rational people when you sit them down in a room would say, ‘Yes that’s a reasonable rational trade off.’ And you can actually solve for the fiscal deficit over the long term, but it’s more about the political willingness to change things.” SOCIAL SECURITY: HERE ARE THE NUMBERS The Social Security Board of Trustees estimates that the Social Security trust fund will be depleted by 2034. After that, under current law, just three quarters of scheduled benefits are projected to be payable to each retiring recipient from 2035 onward. Projecting that out 75 years, if Congress does nothing the expected benefits deficit would reach a staggering $11.4 trillion. These are obviously massive numbers, which explains why the issue is such a political hot potato. But Belt suggests some fixes in the video above. While Belt is now vice chairman of alternative asset manager Orchard Global Asset Management, he has spent much of his career working on retirement issues in the public sector. Belt served as executive director of the PBGC under President George W. Bush, which was set up by the U.S. government to fill the gap of employer pension plans that cannot afford to fulfill promised benefits. It’s an even bigger problems these days, Belt says. Private pension shortfalls will be exacerbated over the coming years by global trends, related to low productivity and population growth, he says. This suggests “lower returns over the medium to longer term.” On the public pension side, Belt is equally qualified to suggest fixes to Social Security. After serving on a Congressional commission called the National Commission on Retirement Policy during the Clinton Presidency, Belt and others put forth proposals like raising the retirement age – and indexing for gains in longevity. Belt’s discussion with Hedgeye CEO Keith McCullough above is thought-provoking. And should help you get up to speed on an issue affects all Americans.

Several items of interest are discussed this week by Peter Broida:EEOC Announces Use "Randomly Generated Names" to identify casesEinboden v. Dept. of Navy, ___F.3d___ (Fed. Cir. 10/1/2015) (furloughs: deference to agency financial decisions)Independent Union of Pension Employees and PBGC, 68 FLRA No. 155 (9/29/2015) (contract grievance and arbitration procedures survive expiration of negotiated agreement)Rebstock Consol. And DHS, 2015 MSPB 53 (9/29/2015) (threshold of a "threat" for purposes of IRA analysis)DHS, C&BP and NTEU, 68 FLRA No. 156 (9/29/2015) (Dissent of Member Pizzella concerning collateral estoppel effect of arbitration awards)

Should We Worry About PBGCs Debt ABI Executive Director Samuel J. Gerdano talks with Nell Hennessy, President & CEO of Fiduciary Counselors Inc. From 1993 to 1998, Hennessey served as Deputy Executive Director and Chief Negotiator of the Pension Benefit Guaranty Corp. (PBGC) and represented the PBGC in negotiations with major corporate pension plan sponsors and unions in a wide range of industries, including auto, steel, chemical, textile and airlines. She discusses the challenges facing the PBGC amid the economic downturn and potential solutions for the agency as it faces billions of dollars in funding deficits for U.S. pensions.

In this episode, we look at the riders added to the must-sign 2015 budget, including favors for Wall Street, unions, agribusiness, the oil and gas industry, electric utilities, the vending machine industry, telecoms, the trucking industry, the insurance industry, and the politicians themselves. Please Support Congressional Dish: Click here to contribute with PayPal or Bitcoin; click the PayPal "Make it Monthly" checkbox to create a monthly subscription Click here to support Congressional Dish for each episode via Patreon Mail Contributions to: 5753 Hwy 85 North #4576 Crestview, FL 32536 Thank you for supporting truly independent media! CRomnibus Article: CRomnibus Disaster Signals a Sad New Normal in D.C. by David Dayen. The Fiscal Times. December 2014. Article: Wall Street's Omnibus Triumph, and Others by Russ Choma, OpenSecrets Blog, December 2014. Division A Agriculture & FDA Section 741: Defunds an advisory board made up of scientists that evaluates the effectiveness of food safety inspection processes. Section 750: Prohibits funding from being used to inspect livestock slaughterhouses to make sure diseased animals are separated from animals who will be eaten and to make sure the animals are being slaughtered humanely. Section 751: States can exempt schools from the requirement to provide whole grains to students in school lunches. Section 752: No money can be used to implement a law that would require a sodium reduction in school lunches. Division B Commerce, Justice, & Science Section 202: The Department of Justice can't pay for an abortion unless the mother's life is in danger or unless she was raped. The bill acknowledges that this might be unconstitutional and if so, this provision will be "null and void". Section 501: Money can't be used for propaganda that is not authorized by Congress. Section 509: No money can be used to seek the removal of another country's tobacco marketing restrictions, "except for restrictions which are not applied equally to all tobacco or tobacco products of the same type". Article: US floats cutting tobacco from part of Pacific trade pact, Krista Hughes, Reuters, October 21, 2014. Section 516: "None of the funds made available in this Act shall be used in any whatsoever to support or justify the use of torture by any official or contract employee of the United States Government." Section 517: Fully automatic weapons may be exported to Canada without an export license if they are to be used by the US Federal Government or the government of Canada. Section 519: Prohibits new trade agreements from including language that forces countries to police the unauthorized distribution of patented pharmaceuticals, language that prevents generic versions of drugs before the patent has expired, and language that allows patent owners to prevent importation of products even if their product is available in other countries. Section 528: No money can be used to transfer Khalid Sheikh Mohammaed or any other detainee from Guantanamo Bay prison to another location in the United States. Section 530: The government should purchase Energy Star light bulbs to the extent practicable. Section 533: Prohibits government employees from denying or ignoring a permit to import shotguns. Section 538: Prevents the Department of Justice from using it's money to prevent States from implementing their medical marijuana laws. TITLE VI- Travel Promotion Enhancement and Modernization Act Passed the House in July 2014 and was discussed on CD081: The July Bills. Changes the board of directors of Brand USA – a non-profit organization that advertises U.S. tourism – from being made up of travel industry specialists to one made up of entirely of executives, with five seats reserved for people with ties to multinational corporations. It eliminates the seat for the specialist in intercity passenger rail. Extends the authorization for the government to spend $100 million per year on Brand USA through 2020. Extends the Travel Promotion Fee – a $10 fee charged to people who get a visa to travel into the United States – until 2020. Division C Defense Coming Soon Division D Energy & Water Section 107: Federal funding can't be used to enforce the mitigation regulations known as the "Modified Charleston Method." The Modified Charleston Method was implemented in May 2011 and is a formula for calculating how much wetlands need to be protected for each acre of private development. This method protects more wetlands than are protected when it is not used, generally requiring 3 acres of wetland conservation for every acre destroyed. InfoPacket: The University of New Orleans 2013 Economic Outlook & Real Estate Forecast Seminar for the Northshore One of the projects impacted is a Kinder Morgan natural gas pipeline. Kinder Morgan has given almost $80,000 to the Boehner for Speaker Committee. Article: Wetlands Mitigation Rules Get Tougher, and St. Tammany Officials Get Worried by Christine Harvey. The Times-Picayune. March 2012. Amendment added by Rep. Steve Scalise of Louisiana Press Release: Scalise Applauds Delay of the Modified Charleston Method in 2015 Appropriations Bill, December 2014. The vast majority of Rep. Steve Scalise's campaign funds come from PACs - 71% - but his #1 listed contributing industry is Oil and Gas; he's taken over $600,000. Section 109: Prohibits changes to the regulatory definition of "fill material" or "discharge of fill material". In 2002, the Bush administration changed the definition of "fill material" which can be dumped into waterways with a permit, to include "waste" from coal mining. This was attached by Rep. Mike Simpson of Idaho to the 2014 budget. He has taken over $445,000 from electric utilities and $137,000 from mining. Section 111: Prohibits the government from requiring a permit for dumping farming and ranching "fill material" into waterways. Section 112: Deletes an EPA/ Army rule that limits the farming and ranching "fill material" that can be dumped without a permit. Section 312: The Department of Energy is not allowed to construct centrifuges for enriched uranium in 2015 and needs to do a cost-benefit analysis of options for suppling enriched uranium for war purposes and an "estimate to build a national security train". Section 313: Prohibits enforcement of energy efficient light bulb standards. According to the Department of Energy, these standards will save $17.7 billion in energy costs over the next 30 years, as well as avoid 106 million metric tons of co2 emissions. This amendment was added by Rep. Michael Burgess of Texas, whose #5 contributing industry is Electric Utilities - he's taken almost $200,000 -, although he get 69% of his money from PACs. He has added it to must-sign legislation every year since 2010. Division E Financial Services Section 114: The Treasury Department may not redesign the $1 bill. Article: One is the Loneliest Dollar Bill by Sarah Mimms. National Journal. January 2015. Article: Bush Administration Fights Currency Redesign. Associated Press. December 2006. Article: The Blind Welcome a Ruling That May Help Them Count Their Cash by Tina Kelley. New York Times. May 2008. Section 502: Prevents the Federal Communications Commission from implementing a recommendation from 2004 that would change a government subsidy for telecoms to allow payment for broadband lines per household instead of per line, which would effectively reduce the subsidy for the companies. FAQ: Universal Service Administrative Company. Section 630: The text of HR 992, which was the bill written by Citigroup that will allow banks to gamble with credit default swaps on the stock market with customers deposits in FDIC insured banks. Article: Derivatives Markets Growing Again, With Few New Protections by Mayra Rodriguez Valldares. New York Times. May 2014. Article: Three Bankers Bolster Blankfein as Goldman Trading Sinks by Michael Moore. Bloomberg. May 2014. This provision was added by Rep. Kevin Yoder of Kansas, who took over $114,000 from Securities and Investment bankers for the last election alone. Over the course of his four year career, he's taken almost $700,000 from bankers... that we know of. Section 725: "Prohibits Federal agencies from monitoring individuals' internet use." Section 735 Prohibits funding for requirements that would make companies submitting offers for Federal contracts to disclose their political contributions. Section 809: Prohibits Washington DC from using its money to from legalize or reduce the penalties for a schedule I substance, which includes marijuana, for recreational use. Division F Land Management & Environment The Department of the Interior USGS: For the United States Geological Survey to surveys and research topography, geology, hydrology, biology, and the mineral and water resources of the United States... approx $1 billion, available until 9/30/2016. Bureau of Safety and Environmental Enforcement, offshore safety: $125 million minus fees collected, estimated real appropriation of $66 million for enforcing regulations for leases for oil and gas, other minerals, and energy on the Outer Continental Shelf + $65 million - minus fees collected- over half of which needs to go towards expediting drilling permits on the Outer Continental Shelf. Collection and disbursement of royalties, fees, and other mineral revenue will get $265 million. Wildland fire management: $805 million. Hazardous fuels management and resilient landscapes activities can be privatized. This money can be used by the Secretary of State outside the United States. This money can be used to pay off debts incurred for fires in previous years. This money can be used as emergency funds to deal with earthquakes, floods, volcanoes, storms, oil spills, and to control cricket outbreaks. Section 122: Prohibits the Secretary of the Interior from protecting the Sage-Grouse under the Endangered Species Act. Oil backers, conservationists battle over fate of greater sage grouse by Sandra Fish, AlJazeera America, December 2013. Environmental Protection Agency Over $2.3 billion for fire suppression. Federal Firefighting Costs for suppression alone averaged $1.46 billion a year since 2000, a time period that has included 9 out of the 10 hottest years since records began in 1880. Section 411: Allows Alaska red and yellow cedar to be exported to foreign countries. Press Release: Petition Seeks to Protect Tongass' Ancient Yellow Cedars as Endangered Species by the Center for Biological Diversity, June 2014. Article: Forest Service criticized over Tongass management by Maria La Ganga, Los Angeles Times, November 2014. Article: Viking Lumber wins Big Thorne contract, again by Katie Mortiz, Juneau Empire, October 2014. Article: In Alaska, a Battle to Keep Trees, or an Industry, Standing by Michael Wines, New York Times, September 2014. Article: The Forest Service bets on second-growth logging in Alaska by Krista Langlois, High Country News, January 2015. Article: Budget bill boosts logging by Section 419: No money can be used to regulate carbon dioxide, nitrous oxide, water vapor or methane emitted from livestock production. Section 420: No money can be used to require mandatory reporting of greenhouse gas emissions from manure management systems. Amendments identical to Sections 419 and 420 were attached to the 2014 budget by Rep. Ken Calvert of Southern California. He has taken over $650,000 from Agribusiness. Section 425: No money can be used to regulate the lead content of ammunition or fishing tackle. Division G Labor, Health, & Education Health and Human Services Section 217: Prohibits funding of gun control promotions. Section 220: The Biomedical Advanced Research and Development Authority (BARDA) can privatize research into "security countermeasure" drugs for 10 years. Op-Ed: Ebola and the most important agency America has never heard of by former Rep. Mike Rogers, The Hill, October 2014. Department of Education Section 301: No money can be used for transporting children to other school districts to "carry out a plan of racial desegregation of any school or school system." Section 303: No money can be used to prevent voluntary prayer in public schools. Department of Labor Section 406: The National Labor Relations Board can't use their money to provide employees with electronic voting for electing representatives for their collective bargaining. All Departments Section 506: The Departments of Health & Humans Services, Labor, and Education can't use their money to pay for health benefits coverage that includes abortion coverage. Section 507: Abortions can be paid for with Federal funds if the pregnancy was a result of rape or incest or if the mother's life is in danger. States will be allowed to cover abortion and abortion coverage can be offered separately. Section 508: No money can be used for research that harms a human embryo. Section 521: No money can be used for programs that distribute sterile needles to drug addicts. Section 529: No money can go towards ACORN, "or any of its affiliates, subsidiaries, allied organizations, or successors." Article: Congress's Undying (and Less Than Effective) ACORN Funding Ban, by David Weigel, Bloomberg, December 2014. Ebola Response & Preparedness Ebola money is available for use until September 30, 2019. Over $1.7 billion for the Centers for Disease Control to "respond to Ebola domestically and internationally." $10 million for hospital worker and emergency first responder training. $597 million for global health security The money can be used to purchase and insure vehicles in foreign countries. Section 601: The CDC can use this money to "acquire, lease, construct, alter, renovate, equip, furnish, or manage facilities outside the United States." $238 billion in "emergency" funding will go towards the National Institute of Allergy and Infectious Diseases" to "respond to Ebola domestically and internationally." $733 million for the Public Health and Social Services Emergency Fund to "respond to Ebola domestically and internationally" to develop and purchase vaccines, "necessary medical supplies, and administrative activities." Money can be used for the "renovation and alteration of privately owned facilities at the State and local level" Division H Congress Section 102: No money can be used to deliver a printed copy of a bill to a Representative unless that Representative asked for it. Section 105: No more than 50 copies total of the US Code can be printed for the entire House of Representatives. Section 1301: The Government Printing Office is renamed to the Government Publishing Office. Division I Military Construction Section 101: Construction contracts with guaranteed profits will be allowed in Alaska and/or if the Defense Secretary says there's a reason for one in writing. Section 109: Military construction money can't be used to pay property taxes in foreign countries. Section 110: The military can't use this money for any new installations without notifying the House and Senate Appropriations Committees first. Section 111: Architect or engineer contracts over $500,000 in Japan, NATO countries, or countries bordering the Arabian Gulf must be awarded to US firms or be partnerships with US firms. Section 117: Money for military construction can be held & used up to four years after it is appropriated. Section 127: $125 million extra is appropriated until September 2018 for projects anywhere excepts in Europe. Section 512: No money can be used to prepare any United States facilities to house detainees from Guantanamo Bay prison. Veterans Veterans benefits will cost $94 billion and medical expenses will cost $59 billion, which is $153 billion total. Section 236 The Veterans Integrated Service Networks are not allowed to change their system for contracting for diabetes monitoring supplies and equipment. Press Release: Sysmex America Sign Two Contracts with U.S. Department of Veterans Affairs, PR Newswire, November 2013. "Sysmex America now holds Veterans Administration hematology contracts and standardization agreements with 16 of the 21 VISNs." "The VA Schedules are indefinite delivery/indefinite quantity type contracts awarded to pre-approved vendors." OpenSecrets: Hal Rogers, chairman of the Appropriations Committee is a shareholder of Roche Holdings, which signed a 10 year distribution agreement with Sysmex America in 2012 which allows Roche to distribute Sysmex hemotology products to countries around the world. Division J State Department & Foreign Operations $2.1 billion for Worldwide Security protection for the State Department, which has doubled since 2008. Article: Exclusive: Blackwater Wins Piece of $10 Billion Mercenary Deal by Spencer Ackerman, Wired, October 2010. Approximately $3.5 billion will go towards the United Nations, including U.N. "peacekeeping missions". Over $1 billion plus $2.7 billion in "global health programs" funds will go to USAID. $5.6 billion will go towards combatting AIDS, Tuberculosis and Malaria. $2.5 billion will go towards "development assistance", which includes spending on: Agribusiness Setting up financial institutions "Policy and regulatory programs" that "improve the environment" for financial institutions. Marketing Energy and storage facilities Infrastructure Schools spreading "ideas and practices of the United States, including new education material and curricula "To expedite the location, exploration, and development of potential sources of energy in developing countries" Over $2.6 billion for the "Economic Support Fund", which includes funding for: Promoting "economic or political stability" Legal education training Academic training for law enforcement (the military is prohibited from participating) Prison programs "Legal reform" and "revision and modernization of legal codes and procedures" Can be used for loan guarantees for Jordan, Ukraine, and Tunisia and this money won't count towards laws limiting assistance to countries. This money can be used to create "enterprise funds" for Egypt or Tunisia, which are "public-private partnerships for the purpose of investing US Government funds to support the private sector". This money "shall be available for economic programs and may not be used for military or paramilitary purposes." $853 million for the War on Drugs Includes authorization for the "use of herbicides for aerial eradication". Tells the State Department to report on the cost of "establishing an aviation platform in Africa" which would be used for, among other things, counternarcotics. $145 million for "Peacekeeping Operations" to "enhance the capacity of foreign civilian security forces" including military forces in charge of policing civilians (gendarmes). $106 million for "International Military Education and Training." $5 billion for the "Foreign Military Financing Program The money can be used "to procure defense articles and services to enhance the capacity of foreign security forces" Over $3 billion must be grants to Israel $1.3 billion can be put in an interest bearing account at the NY Federal Reserve for Egypt, and the money can be used for weapons as long as Egypt meets a list of demands (including giving detainees access to due process of law). Article: Congress allows Obama to reopen military aid to Egypt by Julian Pecquet. Al Monitor. December 10, 2014. $1 billion will be for Jordan. This money can be used in the Western Sahara. This money can be used for "counterterrorism and counterinsurgency" in Pakistan. Section 7004: The State Department can construction "diplomatic facilities" that include office space or "other accommodations" for the US Marine Corps. The Congressional report on where these facilities are and their costs can be classified. Congress doesn't need to be notified of new diplomatic facilities if there is a "security risk to personnel". Section 7008: Money can't be used to directly assist any government whose elected government is removed by the military. However, we can give that country money again as long as the next government is elected. Section 7034: Prohibits money being used for "tear gas, small arms, light weapons, ammunition, or other items for crowd control purposes for foreign security forces that use excessive force to repress peaceful expression." Section 7041: We will give $150 million to Egypt as long as Egypt is taking steps to "implement market-based economic reforms". Section 7041: The State Department can use its money to create a new government and "promote economic development" in Syria. Section 7042: State Department funds are going towards training and equipping Ethiopian military and police. Section 7042: State Department funds will also towards training militaries in Angola, Cameroon, Chad, Cote d"Ivoire, Guinea, and Zimbabwe. Section 7042: State Department money will go towards managing natural resources and supporting security forces in South Sudan. Section 7043: State Department money will be used for naval forces, coast guards and nongovernmental organizations "directly engaged in maritime security issues" in Asia. Section 7043: State Department money will go towards the Philippine army. Section 7043: State Department money will be given to the military of Vietnam and for health/disability activities in areas sprayed with Agent Orange and/or contaminated with dioxin. Section 7044: The State Department can construct and renovated US government facilities to accommodate Federal employees or contractors or expand aviation facilities in Afghanistan if it would "protect such facilities or the security, health, and welfare of United States personnel." Money for Afghanistan can go towards "programs in Central and South Asia relating to a transition in Afghanistan, including expanding Afghanistan linkages within the region." Section 7044: Money can go towards military training in Sri Lanka. Section 7045: State Department funds can be used to "support a unified campaign against narcotics trafficking" in Columbia. 10% of the funds will go towards "aerial drug eradication programs". Section 7045: State Department funds can be given to the Guatemalan army. Section 7045: State Department funds can be given to the Honduran army and police. Section 7045: State Department funds can be given to the Mexican army and police. Section 7074: $100 million for the Special Defense Acquisition Fund, which is under the control of the Defense Department, to buy weapons and defense services for foreign countries. Section 7083: The United States will contribute over $3.8 billion to the International Development Association, a branch of the World Bank that provides loans and grants to "boost economic growth" in poor countries. It's our 17th contribution. Over $1.3 billion will be for State Department security. Over $7.6 billion for the War on Terror. $1.5 billion for Ebola "assistance for countries affected by, or at risk of being affected by, the Ebola virus disease outbreak." Division K Transportation $500 million for national transportation infrastructure, including highway, bridge, rail, port, and public transportations projects. $9.7 billion: For the Federal Aviation Administration. $8.6 billion is from the Airport and Airway Trust Fund so the taxpayer subsidy for air travel is $1.1 billion. $40 billion for the highway trust fund. Section 133: Prohibits enforcement of regulations until September 30, 2015. The regulations delayed say: Commercial drivers must not work for 34 consecutive hours between weeks and that 34 hours must include two periods from 1am to 5am. Commercial drivers must not drive more than 60 hours in 7 consecutive days or 70 hours in 8 consecutive days. Truckers will be able to drive for 82 hours per week. Article: The Department of Transportation wants truckers to sleep more. Congress said no. by Lydia DePillis. Washington Post. December 2014. Article: Survey Shows Hours of Service Top Trucking Concern. Trucking Info. October 2014. OpenSecrets: Senator Susan Collins of Maine inserted the rider on behalf of the trucking industry. She received $21,000 from the trucking industry for the 2014 election. The trucking industry also gave $87,150 to Senator Mitch McConnell, the new Majority Leader in the Senate. $250 million for Amtrak operations. $1.1 billion for Amtrak investments and improvements. Housing Section 235 Forbids funding for a program that reduces mortgage rates for first time home buyers who go through home counseling and financial education. Section 420 "It is the sense of Congress that the Congress should not pass any legislation that authorizes spending cuts that would increase poverty in the United States." Division L Homeland Security Funding for the Department of Homeland Security remains at the same levels as 2014. Funding runs out on February 27, 2015. Article: With Shutdown Avoided, Who Are Winners (And Losers) In 2015 Budget? by Kelly Phillips, Forbes, December 2014. Division M Expatriate Health Coverage This section includes the altered text of HR 4414, the Expatriate Health Coverage Clarification Act of 2014, which was discussed on Congressional Dish episode CD075: The April Bills. Exempts expatriate health plans issued or renewed on or after July 1, 2015 from the minimum standards set by the Affordable Care Act. "Expatriate" includes people from foreign countries working in the United States as part of a job transfer. The effects of this on the PAYGO budget will not be counted. The original version of this bill was written by Rep. John Carney of Delaware, who has taken over $312,000 from the insurance industry. Division N Campaign Contributions In May, as discussed on Congressional Dish episode CD071: Our New Laws, the President signed into law the Gabriella Miller Kids First Research Act, which eliminated public financing of political party conventions. Section 101: Creates three separate funds for political parties, at least triples the amount of money an individual can contribute to each of these new funds, and eliminates limits on how the parties can spend the money. We don't know exactly how much individuals will be able to contribute to political parties now that this provision is law. NPR has a different number than the Washington Post, which has a different number than The New York Times. Congressional Dish calculations indicate that the changes will allow an individual to contribute at least $257,400 per year and that amount increases every two years based on the Consumer Price Index. Division O Pensions Under the Employee Retirement Income Security Act (ERISA), pensions for retiree's who have already started to collect benefits can't be cut unless a company goes into bankruptcy. This section changes the law to allow benefit cuts to multi-employer pension plans under other scenarios. Section 102: Allows a multi-employer pension plan to be labeled in "critical status" five years before it's projected to actually meet critical status criteria, if the plan sponsor chooses to label it that way. Department of Labor list of Multi-Employer Plans listed as "critical status" Section 106: After certifying that a plan is in critical status, a "funding improvement plan" must be crafted, and benefits cannot be cut nor new people excluded during this time. Section 121: Allows the Pension Benefit Guaranty Corporation (PBGC) to merge two or more multi-employer pension plans and allows the PBGC to give cash to the plans. Section 122: Multi-employer plans can be broken up if they've cut all the benefits allowed and need to do so to remain solvent. Section 131: Increases the premium rate for multi-employer plans from $12 to $26 in 2015 and then some complicated amount tied to the national average wage index after that. Section 201: Allows benefits to be cut when a plan is in "critical and declining status", which means the plan is in critical status and projected to become insolvent within the next 15 years. For plans with over 10,000 participants, one participant - selected by the plan sponsor - will advocate on behalf of all the retired participants. The following conditions need to be met in order to suspend benefits: The plan needs to certify that it will avoid insolvency. The plan needs to certify that it will become insolvent if it doesn't cut benefits. Limits on benefit suspensions Monthly benefits can't be reduced below 110% of what would be guaranteed by the Pension Benefit Guaranty Corporation, which is approximately $1,180 for participants in multi-employer plans. People over 75 are exempted from the benefit cuts. Disability benefits can't be cut. Eleven different factors will determine how much each participant's benefits would be cut. Benefits will be cut first for employees that worked for companies that withdrew from the plan and failed to pay. Benefits can't be cut until the plan sponsor submits can application to the Secretary of the Treasury and notifies plan participants, employers, and employee organizations. The notice can be in electronic form. Process for cutting benefits: The plan sponsor must submit an application to the Secretary of the Treasury for approval to suspend benefits. Within 30 days of receiving the application, the Secretary of the Treasury will solicit comments from employers, employee organizations, and participants on the website of the Secretary of the Treasury. If the Secretary of the Treasury does not approve or deny the application within 225 days, the application will be deemed approved. Within 30 days of the application's approval, participants and beneficiaries must vote on whether or not to cut benefits. Majority rules. If the participants vote not to cut benefits, the Secretary of Treasury can label the plan a "systemically important plan" and allow benefits to be cut even though the participants voted no. Access to the courts is limited: A court reviewing a lawsuit challenging a benefit cut can only grant a temporary injunction if the plaintiffs will probably win. A participant in a pension plan can not challenge a benefit cut in court. OpenSecrets: Rep. John Kline has taken over $14 million in campaign contributions from all kinds of industries. OpenSecrets: Former Rep. George Miller took over $2.4 million from unions, that we know of. Music Presented in This Episode Intro & Exit: Tired of Being Lied To by David Ippolito (found on Music Alley by mevio) Blame the Bankers by The Sharp Things (found on Music Alley by mevio) Growing Marijuana Song by Ben Scales Be Heard Have something to say? Leave a message on the Congressional Dish voicemail line and it might be featured on the show! 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