BAR wrote:
Boater wrote:
Calif Bill wrote:
"Boater" wrote in message
...
CalifBill wrote:
"Boater" wrote in message
...
BAR wrote:
Boater wrote:
BAR wrote:

The perfect example of why Social Security is going to fail and
why we need to abandon it now. For some people it will be
unfair and it will hurt but that is too bad. Everyone younger
than 35 gets no Social Security but, they still fund it.
Corporations with defined pension programs should not be allowed
to "unfund" their pension liabilities.
That's why the unions should be the clearing house for their
members. Provide 100 workers at a rate of $50 per hour to meet a
quota of 500 cars a day. What the union does with the money is
between the union and the workers.

First rule: Get the money up front.
Well, that's similar to what the construction worker unions do.
sort of.

The construction unions negotiate a rate with the
contractors...the contractors pay the workers their hourly
paycheck rate and deduct and forward the required taxes to the
feds. The deductions for health and welfare go directly to the
jointly administered union-contractor health and welfare pension
and benefit fund offices. Anyone who has access to any of the
funds at the benefit is bonded. Typically, the trustees retain a
reputable trust funder "advisor" who helps the trustees invest the
funds in "safe" investments that pay a return higher than the
anticipated payout for pensions and other benefits. There are no
unfunded liabilities. The employer for whom the union workers work
has no access to the pension funds.

These are defined pensions, not 401k's. The employer may offer a
401k, but it isn't typically administered by the joint trustees.






Yup union pension funds. Like the teamsters, plumbers, Ullico,
etc. How many went to jail for those thefts.

D'oh. If any pension funds were stolen, the bonding insurance
companies made the funds good, and then insisted upon prosecution
and aided the prosecutors.

You don't seem to be able to understand the concept of union
officer/pension fund officer-trustee bonding. Either that or you are
suffering from short-term memory loss, because I have brought this
to your attention at least a half-dozen times.

I don't keep track of the teamsters or plumbers, since neither are
my union. There was no "theft" of pension funds at ULLICO, either.

Here...try reading this and see if you understand it:

Bonding Requirements

Section 502(a) of the Labor-Management Reporting and Disclosure Act
of 1959, as amended (LMRDA), and provisions of Section 7120 of the
Civil Service Reform Act of 1978 (CSRA) establish bonding
requirements for certain officers and employees of labor
organizations. Every union covered by the LMRDA or the CSRA is
subject to the bonding requirements except for unions whose property
and annual receipts do not exceed $5,000 in value.

The required bonds are a type of insurance agreement which
guarantees reimbursement to the union for any financial losses
caused by fraudulent or dishonest acts by officers or employees,
such as theft, embezzlement, or forgery. The bonding requirements
are not based on the idea that particular individuals or
organizations are inherently dishonest. Rather, bonding is required
because experience has shown that when people are entrusted with the
money or property of another, there will be instances when
individuals will cause a loss through fraud or dishonesty. Bonding
is therefore required to insure the union against such a loss.

The law provides that any person who "handles" union funds or
property must be bonded for at least 10% of the funds handled during
the union's preceding fiscal year up to a maximum of $500,000. An
individual is considered to be "handling" union funds if his/her
duties or authority provide access to union funds resulting in a
significant risk of loss of funds if that person engages in
fraudulent or dishonest acts. For example, a person who receives
dues, fees, etc., from members is clearly "handling" union funds and
therefore must be bonded. Also, however, any officer or employee who
has authority to sign checks on the union's account is "handling"
union funds and must be bonded even if he/she has no physical
contact with the funds. Individuals who typically must be bonded
include union officers (both elected and non-elected), employees
such as business agents, trustees, key administrative and
professional staff, and clerical personnel.

On the reverse is a detailed worksheet designed to assist you in
computing the amount of bonding coverage required. A quick formula
for computing the approximate amount of bonding coverage required is:

Liquid Assets + Total Receipts x 10%=Amount of coverage required per
person

Liquid assets, for purposes of this formula, are those assets that
are quickly and easily negotiable. Cash on hand, deposits in any
type of financial institution, certificates of deposit, U.S.
Treasury securities, corporate stocks and bonds, and accounts and
loans receivable are common examples of liquid assets. Property of a
relatively permanent nature, such as land, buildings, furniture, and
fixtures is not a liquid asset.

The required bond must be obtained from a company on the U.S.
Treasury Department list of approved bonding companies. The
companies know whether they are approved and your national or
international union may be able to assist you. You can also obtain a
copy of the list from the nearest OLMS office. In addition to the
requirement of placing the bond with a company on the Treasury
Department list, the law prohibits placing the bond through an agent
or broker or with a company in which any union or any officer,
agent, shop steward, or other union representative has any direct or
indirect interest.

It is possible for a bond to cover more than one union. For example,
many national or international unions obtain a bond covering both
their organization and their affiliated unions. Contact your
national or international union if you have any questions about
whether your union is covered by such a bond.

The following checklist will help you stay in compliance with the
bonding requirements:

* Refigure the amount of bonding coverage required for each
fiscal year immediately after the close of the last fiscal year.
(Figures required for the bonding computation must be compiled for
your union's annual financial report Form LM-2, LM-3, or LM-4 as well.)
* If your union's bonding requirements have increased from the
last year's coverage, obtain amended coverage immediately.
* Make sure every person who "handles" funds is covered. (The
easiest way is to obtain standard "blanket" coverage for all persons
who handle funds.)
* Make sure the company issuing the bond is on the U.S. Treasury
Department list of approved companies.

If you have any questions about the bonding requirements or their
application to your organization, contact the nearest OLMS office.
Copies of an explanatory pamphlet, "Bonding Requirements Under the
LMRDA and the CSRA," and the LMRDA bonding regulations, 29 CFR Part
453, are also available from the nearest OLMS office.

Additional Tips for International Unions

National and international unions that purchase bonding coverage for
their affiliates should examine the timetables established for
affiliates to report the funds handled during the fiscal year. The
amount of bonding coverage must be set at the start of each fiscal
year. This can be of particular importance if the amount of bonding
coverage must be increased because of an increase in the amount of
funds handled during the fiscal year. The LMRDA prohibits any person
who is inadequately bonded from receiving, handling, disbursing, or
otherwise exercising custody or control of any of the labor
organization's funds or property. Unless the parent organization
requires each affiliate to report the amount of funds handled
immediately after the close of the fiscal year and then promptly
arranges for adequate bonding coverage if an increase is required,
adequate coverage may lapse for several months or longer, which is a
violation of the LMRDA.


I know about bonding. I worked for a company where I had to be
bonded in my earlier years. But Ullico board members STOLE MONEY.
Issuing stock at a discount and then buying it back at more than the
current value is theft. They should have gone to jail. If the union
members money was not ripped off, where did the money come from?
Just because they beat a jail term, does not mean they did not
deserve to be charge with fraud.


There's just no point in trying to put this into terms you might
understand, because, well, it's too abstract for you. No pension money
was stolen. Got it?

Who owns Ullico stock? Is it traded on the open market?


Nope. No open market trading. Privately held corporation then and now.