Tuesday, October 18, 2011

Why Your Employer Wants You Dead

Jon Stewart had on Ellen Schultz, author of Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers. She wasn't very articulate in person, but Stewart managed to extract a lot of the scandalous details. One rip-off is siphoning off worker's pension funds to fund extravagant executive pensions. Something like 1/5 of the billions GE has ostensibly saved for 500,000 workers pensions are designated for executive pensions.

The killer, though, was another trick they use to fund executive pensions. Congress has allowed them to take out life insurance policies on ordinary workers (without their knowledge or consent) and then dump the tax free proceeds into their executive pension funds. Saves on all that stupid safety precautions too.