In 2014 a new Federal law made it possible for pension funds to cut benefits for their recipients. Much to the protest of pensioners, the government and numerous unions supporting the change cited pension plans that were in imminent danger of collapse, saying that the only way to save the funds was to cut benefits to potentially millions of recipients. Six months later, the U.S. Supreme Court took things a step further when they opined that the government has the right to fully seize 401(k) and pension funds that were being poorly managed.
Of course, most Americans were either not paying attention or completely ignored the ramifications of the new rules set forth by their government because, well, anyone who talks about the potential for a collapse of pension funds or the economy is, as President Barack Obama so eloquently noted in his recent State of the Union Speech, “peddling fiction.” Except in October of last year the canary in the coal mine fell over and died when Illinois announced that the State was posting pension payments because it ran out of money. READ MORE