A QDRO WILL LOWER BENEFITS for PARTICIPANTS

Another story about the “bigs” and the “littles”.

On my way home from a thanksgiving visit I picked up a copy of the New York Times, Tuesday, November 29, 2011 in the Denver Airport. On the front page is an article, “Judge Rejects An S.E.C. Deal With Citigroup”. At first blush it looks as though the SEC goofed and tried to settle a case with Citigroup for too little ($285 million). Citi had sold some securities for a profit of $160 million to investors who then lost $700 million on the investment. There probably weren’t too many electricians involved but it sure made Citi look ugly. I suppose the investors squawked and the SEC took a look.

Well, the SEC suggests they cannot afford to fight these big Wall Street companies so they must settle cases with negotiation. I think the New York Times missed the headline. It should have been U.S. government can’t afford justice for Wall Street.

The SEC is an executive branch agency under President Obama. Judge Rakoff, who rejected the settlement, is a President Clinton appointee who turned down a previous settlement the SEC proposed for Bank of America. That SEC proposal was $33 million and the final approved settlement was $150 million do to Judge Rakoff. BIG DIFFERENCE

Lets step back and take a “big picture” look. We are just winding down “the war with no reason” in Iraq. We lost thousands of soldiers and suffered uncalculated pain for all the soldiers and their families. Now, we can’t afford justice for the Wall Street Barons. It was these same Wall Street guys who’s greed caused even more pain for 99% of our people. Seems the little guy is getting thumped again.

IBEW LOCAL 332 PENSION PLAN A only erred to the tune of $20 thousand in my pension and $20 thousand in expenses but at $380 million they still rate the “big guy” handle. If you are a divorced electrician; be ready when the DROs start hitting the plan. The pension plan may not be there to help as advertised. The trustees have been known to forget where their responsibilities belong. A spouse’s QDRO will hurt you and the Plan is the only authority between you and a even more painful QDRO.

Of course if you are presenting a DRO to the court seeking money from your spouses plan that is a different viewpoint.

“You can’t say civilization don’t advance……in every war they kill you in a new way”   Will Rogers

Happy Trails