Alabama Town’s Failed Pension Is a Warning - Pensioners become destitute.

[groovedaddy]

PRICHARD, Ala. — This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.

Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.

Since then, Nettie Banks, 68, a retired Prichard police and fire dispatcher, has filed for bankruptcy. Alfred Arnold, a 66-year-old retired fire captain, has gone back to work as a shopping mall security guard to try to keep his house. Eddie Ragland, 59, a retired police captain, accepted help from colleagues, bake sales and collection jars after he was shot by a robber, leaving him badly wounded and unable to get to his new job as a police officer at the regional airport.

Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. “When they found him, he had no electricity and no running water in his house,” said David Anders, 58, a retired district fire chief. “He was a proud enough man that he wouldn’t accept help.”

http://www.nytimes.com/2010/12/23/business/23prichard.html?nl=todaysheadlines&emc=a25

[OHdem10]

1. Cut Social Security and the pensioners will have nothing.

Remember when Enron, Lucite, Delphi --you know all those
businesses whose employees had invested in their 401Ks
with heavy amounts of company stock. Enron, for example
all the employees lost everything. Many were close to
retirement. They testified before Congress, without
SS they would be penniless.

Think long and hard when they start cutting SS.

[DrDan]

2. you assume the legislators care. If the wealthy were impacted, that would be

as different story and would warrant action on their behalf.

[groovedaddy]

3. No kidding. Any officials seriously considering cutting social security need to have their heads

examined. While it wouldn't be outright taxation, it might as well be. TAX THE RICH and get back some of the money they stole! It has already gotten difficult enough to survive EXCEPT for the rich, who are making out like the bandits they are. I hate that phrase that "people will have to sacrifice," particularly when it comes from Republicans. Are they oblivious to the fact that working people have had to sacrifice for decades now? It's time for the rich to do some "sacrificing" and I don't mean us on their altar of greed!

[safeinOhio]

4. I always thought that was what the

Pension Benefit Guaranty Corporation (PBGC) was for. I knew it paid at least 60 cents on a dollar, or more on pensions that go bust.

[ProgressiveProfessor]

5. I thought that was for private pensions only

Plans have to pay into it as well.

[safeinOhio]

6. Thanks for the info Doc.N/T