Friday, September 27, 2013

Detroit's Pension Ponzi Scheme

Blog: Detroit's Pension Ponzi Scheme:
"So who benefited from this abuse of the trustees' powers?
According to their spokeswoman:
"Of all the nonpension payments, she said, 54 percent went to active workers, 14 percent went to retirees and 32 percent went to the city, which used its share to lower its annual contributions to the fund. 
The excess payments were often made near the end of the year, when recipients needed money for the holidays, or to heat their homes."
So in addition to playing Santa Claus to retirees each December and using the pension fund as a slush fund, the trustees paid out money already in the plan to help the city fund payments into the plan?
That is a fraud on both the taxpayers and the retirees who depend upon the solvency of the plan. 
 Why aren't these people in jail? "

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