Pensions in the USA

Verizon announced it would stop contributing to pension plans that will affect 50,000 of its managers. Seems the new corporate buzzword for getting rid of those pesky benefits for employees is called "restructuring". For 50,000 people, their retirement plans have been "restructured" into non-existence.

While I certainly understand that workers need to plan for their own retirement, if wages remain basically stagnant, the question of where the additional funds will come from is unanswered. If the US is a consumer nation whose economy is based on spending, then, conversely, saving for retirement will diminish spending and the economy will slow. The pace at which companies are "restructuring" their pension plans has accelerated in the last 5 years, coinciding with the Bushies administration. Bush can make all the speeches about the need for companies to honor their pension promises but the real agenda of the administration is in line with the Conservatives stated policy of eliminating governmental regulations for retirement programs.

Apparently Verizon was not listening to our president since their announcement came just 1 day after Bush's speech. Coming on the heels of his speech, I'll bet the Administration is feverishly working the spin on the issue. Good luck on that one!