Obama uses misinformation to promote himself as protector of corporate employee pension security

[papau]

The facts are that Mr Hartgrave in the Obama ad was born in 1935, hired 1957, expected to retire in 2000, early retired at age 55 in 1990, had his full earned pension paid to him at that time and to this day by the Pension Benefit Guaranty Corporation, and lost nothing because of the companying ending its pension plan, and nothing owned to Mr Hartgrave was reduced because of any $19 million dollars missing, if there was $19 million missing, from the pension plan assets. The system that is in place now protected Mr. Hartgrave. The $1500/month was for service to age 65 - he was 10 years short of that service. The $1500 has for a single life annuity that did not begin payments until age 65. Mr. Hartgrave began his pension at age 55. the standard actuarial reductions for less service and early payment can reduce $1500 to $379 (using as mortality the A49 mortality table and 10% interest) and indeed the actuarial equivalent assumptions may well be more like a lower 7% offset by a further reduction for joint and survivor or a death benefit like getting 20 years for certain whether dead or alive.

So why does Obama pretend that the fellows pension is not protected under current law - and that we therefore need him to protect our pensions in Washington? And more important why did he not spend a few dollars and have a pension actuary review what he was about to present in an ad? I could have used the money! :-)

==================================================================================================================================

Details of a television ad released Thursday by Democratic presidential candidate Barack Obama's campaign.

TITLE: "High and Dry."

LENGTH: 30 seconds.

AIRING: Iowa.

SCRIPT: Barack Obama: "I'm Barack Obama and I approve this message."

David Hartgrave of Cedar Rapids, Iowa: "I worked here for 33 years. Did everything that they asked me to do. The executives decided to take $19 million out of our pension fund. Didn't return it. Thought I was going to be getting $1,500 a month. I only got $379."

Obama: "I'm telling the CEOs it hurts America when they cash out and leave workers high and dry. It's an outrage. And you've got to have someone in the White House who believes it's an outrage."

Hartgrave: "Barack Obama's gonna look out for me."

KEY IMAGES: Hartgrave stands speaking in front of the abandoned Wilson Foods plant in Cedar Rapids. A newspaper headline appears on the screen that says, "Farmstead to notify workers of end of pension plan" and fades to Hartgrave taking a walk with his wife. Text appears on the screen that says, "The Obama Plan: Reform pension and bankruptcy laws to protect workers, not CEOs." Then Obama is shown speaking to people who nod in agreement when he says it's an outrage.

[antigop]

1. The PBGC doesn't protect early retirement subsidies, does it? n/t

[papau]

2. Only 417e protects the early retirement subsity - a PBGC payout is the plans actuarial

equivalent oof the retirement benefit - and is only available if the plan had an early retirement option.

My point was that any shortfall in assets - even a shortfall caused by theft as was implied - has no effect on the eventual payment amount.

The PBGC pays 100% of what has been earned.

There is no need for Obama to "fight for " us - our defined benefit pensions are protected without him - it is an ad based on a lie.

[walk softly]

3. Obama is calling attention to an American crisis for seniors,

focusing on companies looting pension funds and workers losing promised pensions and insurance benefits. This is happening across the country and Iowa every day! What about the retired folks at Rockwell and Deere that were just informed of losing company insurance coverage? I'm happy to see a Presidential candidate speak out on issues that affect my life. Your criticism of the commercial smacks of sour grapes - where you in HR in an earlier life?