Babhadfad12 t1_j0zst8z wrote on December 20, 2022 at 5:10 PM

Reply to comment by Karrick in New York City Has 25 Days to Settle Retirees’ Switch to Privatized Insurance by irish_fellow_nyc

Considering NYC does not have the power to issue new USD, default risk is always be a concern for the lender (or creditor), which is proportional to the political pull of the deferred compensation recipients.

Karrick t1_j0zuttw wrote on December 20, 2022 at 5:22 PM

The issue in this case is not the viability of the investments, it's "will the union give away my rights to the pension I paid into at some point in the future?" Because that is the precedent they are setting here.

Babhadfad12 t1_j0zv7xp wrote on December 20, 2022 at 5:25 PM

For the recipient, the effect is the same. Call it agency risk instead of default risk. There is plenty of history where deferred compensation agreements such as retiree healthcare and defined benefit pensions were renegotiated.

Karrick t1_j13myei wrote on December 21, 2022 at 12:53 PM

I suppose the effect is of the same nature, but this is a complete abrogation of the agent's responsibility. This is the union saying "yeah, even we don't care about the benefits you're promised." It is entirely reasonable to not expect your agent to pull that shit.