A recent letter had a complaint about the government bailing out “corporations” and their failing pension plans. While no one really likes the government bailing out corporations; that isn’t what is happening in this instance.
Many pension plans were in trouble after the downturn in 2008. The health of the plan is based on continued contributions from the people in the plan. If a plan is failing, you don’t attract new contributors; and it all becomes a downward cycle.
The American Rescue Plan put into place under Biden saved the pension plans of millions of people; made the plans stable and attracted new contributions. The majority of plans are federally insured. The government isn’t bailing out the corporations. It’s bailing out the pensioners; those “taxpayers” that the letter writer was so concerned about.
If those pensions fail; the government is on the hook for payouts for decades to come. It is fiscally more responsible to stabilize the plans now; rather than provide a monthly check to those millions of pensioners for the next 40 years.
Barbara Adams
Stanwood
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