NY Times: A Small Taste of Social Security Problem

Thanks to Viking Pundit for this story about the problems with NY Times' pay-as-you-go benefit fund.

The New York Times faces a looming $4 million shortfall in the health and benefits plan that is administered by the Newspaper Guild and about 1,500 unionized members may have to give up a 3 percent pay hike. An e-mail from the Guild jolted unionized members, who were told that their benefits fund faces a "major financial shortfall that is projected to hit about $4 million this year."

The Guild's members face two options - they can forego their 3 percent pay raise that was to take effect at the end of the month and instead transfer the money to the benefits fund, or take the raise and face "a drastic cut in benefit levels including the elimination of all dental, vision and life insurance."

William O'Mara, secretary/treasurer of the Newspaper Guild, denies that the benefits fund is bankrupt, but instead is simply paying out more in benefits each month than it is receiving. Workers were were obviously angry about the latest development. Perhaps now some of them will learn first hand the problems of the current Social Security system.