Bailout mania...
CalifBill wrote:
"Boater" wrote in message
...
Calif Bill wrote:
"Boater" wrote in message
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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?
They tried.
No, Bilious, they didn't.
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