The Hall of Cons: Web site exposes cr...

The Hall of Cons: Web site exposes crooks, teaches a lesson

There are 1 comment on the LA Daily News story from Jul 2, 2009, titled The Hall of Cons: Web site exposes crooks, teaches a lesson. In it, LA Daily News reports that:

It's not the first time Bernie L. Madoff has had his name in lights this year. But with his induction into the newly launched Con Artist Hall of Infamy, it may be the first time his exploits will serve a constructive purpose.

Join the discussion below, or Read more at LA Daily News.

Art Campbell

Perth, Canada

#1 Jul 4, 2009
I note that the designer of Defined Benefit Pension Plans and the employers who sponsor them and the government regulators are not on the list. Certainly they qualify since they transfer a lot of money from pensioners, at least in Canada. I understand the Defined Benefit Pension Plans are world wide. It is the most popular plan in Canada and is used by all levels of government and large corporations. Perhaps it is of interest since Defined Benefit Plans are used in the U.S.
The mechanism that transfers money is the method of calculating the pensions to be paid. Typically, salaries over the last five years of employment are averaged and then multiplied by years of employment and 2%. Inflation during those averaging years affects equally the cost and purchasing power of the pension. Pensions of those retiring in 2009 will have about 6% less purchasing power and cost 6% less than is inflation were zero. The comparable figure for 1979 retirees is 25%.
Legislation effectively covered up this transfer of funds by diverting attention to the indexing of pensions. Indexing is a feature of the federal plans. An account was set up to pay indexing with 2% of salary legislated to go in to the account. The plan actuaries calculated the cost of indexing as 4.8% of salary. A $6 billion deficit quickly built up. The Auditor General included it in his report, without saying why there was a deficit. Ads and editorials followed and the public were left with the impression that indexing was expensive. Articles c/w misinformation still appear in the media.
The above details are in The 1980 Actuarial Report for the Public Service Plan, hardly a sought after document, therefore its info was known to only the really curious.
No one wrote of the transfer of money by inflation in the salary averaging years. Does that qualify for inclusion in the Hall of Infamy? I can't find how to make a nomination.
Art Campbell
Nepean Ontario Canada

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Con Discussions

Title Updated Last By Comments
News Twins Tegan and Sara rock on, despite their cri... (Apr '08) Apr '08 Jenny 1
News Jeremiah Tucker: Releases pit clever vs. emotional (Aug '07) Aug '07 rfp 4
More from around the web