How is the 86 billion bailout going to work?

January 16, 2020 Off By idswater

How is the 86 billion bailout going to work?

The new legislation changes that. It calls for the Treasury to set up an $86 billion fund at the pension agency, using general revenues. The agency would be required to keep the money separate from the funds it uses for normal operations. It would use the new money to make grants to qualifying pension plans, allowing them to pay their retirees.

How many people are affected by pension bailout?

The bailout targets multiemployer pension plans, which bring groups of companies together with a union to provide guaranteed benefits. All told, about 1,400 of the plans cover about 10.7 million active and retired workers, often in fields like construction or entertainment where the workers move from job to job.

Is the House stimulus bill a pension bailout?

“Both the House and Senate stimulus measures would give the weakest plans enough money to pay hundreds of thousands of retirees — a number that will grow in the future — their full pensions for the next 30 years.

How does the government bail out pension plans?

The federal government does provide a backstop for certain failing pension plans through the Pension Benefit Guaranty Corporation, which acts like an insurer and makes companies pay premiums, but does not get taxpayer dollars. Currently, the pension agency has separate insurance programs for single-employer and multiemployer pensions.

How much money is going to States in the bailout?

The numbers boggle the mind: $195 billion goes to states with no strings attached (except, of course, to ban tax cuts). There’s $130 billion for reopening K-12 schools with no requirement they reopen. Another $25 billion for public housing and $20 billion for public transit.

What was the 86 billion pension bailout for?

Rather, the $86 billion is a taxpayer bailout for about 185 union pension plans that are so close to collapse that without the rescue, more than a million retired truck drivers, retail clerks, builders and others could be forced to forgo retirement income.

How much did the government make from the AIG bailout?

The Federal Reserve and Treasury Department provided $141.8 billion in assistance in exchange for receiving 92% ownership of the company. 8 The government earned a $23.1 billion profit as a result of the bailout. AIG paid $18.1 billion in interest, dividends, and capital gains to the Fed.

How much did the US government bail out the financial industry?

To address the crisis, and the nationwide economic damage it was causing, Congress enacted the Financial Institutions Reform, Recovery and Enforcement Act of 1989, pumping some $293.3 billion into the floundering industry, one of the most costly and extensive government bailouts of all time.