Tag Archives: benefits

What If All Americans Exercised Regularly? by Ross Pomeroy

I know of no one who has taken up regular exercise who says that it hasn’t improved his or her life. From Ross Pomeroy at realclearscience.com:

Fewer than one in four Americans get enough physical exercise, defined as at least 150 minutes of moderate or 75 minutes of vigorous activity each week, coupled with two bouts of muscle-strengthening. While this statistic may come across as societal scolding – easily ignored – it has huge ramifications for Americans’ lives and the economy.

Why? It’s simple: exercise may be the most potent and easily accessible tool humans have for improving their lives. If the myriad benefits of exercise could be bottled into a drug, it would be rightfully hailed as a “miracle” treatment. Regular exercise prevents and even reverses type II diabetes, drastically reduces the chances of heart attack and stroke, lowers the odds of developing cancer and dementia, and boosts the immune system, shortening the duration of syndromes like the common cold, influenza, and COVID-19 as well as reducing their severity. There’s more: exercise improves your sex life, prevents or ameliorates depression, helps you sleep, alleviates chronic pain, and makes you less susceptible to all sorts of injuries.

Unfortunately, hundreds of millions of Americans are unable or unwilling to take advantage of these real and tangible advantages. This has consequences. According to a 2018 study conducted by the Centers for Disease Control, 8.3% of yearly deaths in nondisabled adults 25 or older can be attributed to inadequate physical activity. MBA students at the University of North Carolina (UNC) translated these preventable deaths into terms of life expectancy. They estimated that Americans’ lack of exercise cost men 6.2 years of life and women 5.6 years.

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“This Is Going To Be A National Crisis” – One Of The Largest U.S. Pension Funds Set To Cut Retiree Benefits, by Tyler Durden

Get used to headlines like the one above. There will be innumerable pension shortfalls, leading to increased contributions, slashed benefits, and in dire cases, bankruptcies. From Tyler Durden at zerohedge.com:

A dark storm is brewing in the world of private pensions, and all hell could break loose when it finally hits.

As the Washington Post reports, the Central States Pension Fund, which handles retirement benefits for current and former Teamster union truck drivers across various states including Texas, Michigan, Wisconsin, Missouri, New York, and Minnesota, and is one of the largest pension funds in the nation, has filed an application to cut participant benefits, which would be effective July 1 2016, as it “projects” it will become officially insolvent by 2025. In 2015, the fund returned -0.81%, underperforming the 0.37% return of its benchmark.

Over a quarter of a million people depend on their pension being handled by the CSPF; for most it is their only source of fixed income.

Pension funds applying to lower promised benefits is a new development, albeit not unexpected (we warned of this mounting issue numerous times in the past). For many years there existed federal protections which shielded pensions from being cut, but that all changed in December 2014, when folded neatly into a $1.1 trillion government spending bill, was a proposal to allow multi employer pension plans to cut pension benefits so long as they are projected to run out of money in the next 10 to 20 years. Between rising benefit payouts as participants become eligible, the global financial crisis, and the current interest rate environment, it was certainly just a matter of time before these steps were taken to allow pension plans to cut benefits to stave off insolvency.

The Central States Pension Fund is currently paying out $3.46 in pension benefits for every $1 it receives from employers, which has resulted in the fund paying out $2 billion more in benefits than it receives in employer contributions each year.

As a result, Thomas Nyhan, executive director of the Central States Pension Fund said that the fund could become insolvent by 2025 if nothing is done. The fund currently pays out $2.8 billion a year in benefits according to Nyhan, and if the plan becomes insolvent it would overwhelm the Pension Benefit Guaranty Corporation (designed by the government to absorb insolvent plans and continue paying benefits), who at the end of fiscal 2015 only had $1.9 billion in total assets itself. Incidentally as we also pointed out last month, the PBGC projects that they will also be insolvent by 2025 – it appears there is something very foreboding about that particular year.

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