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Retirement Heist: How Companies Plunder and Profit from the Nest Eggs of American Workers Hardcover – September 15, 2011
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It's no secret that hundreds of companies have been slashing pensions and health coverage earned by millions of retirees. Employers blame an aging workforce, stock market losses, and spiraling costs- what they call "a perfect storm" of external forces that has forced them to take drastic measures.
But this so-called retirement crisis is no accident. Ellen E. Schultz, award-winning investigative reporter for the Wall Street Journal, reveals how large companies and the retirement industry-benefits consultants, insurance companies, and banks-have all played a huge and hidden role in the death spiral of American pensions and benefits.
A little over a decade ago, most companies had more than enough set aside to pay the benefits earned by two generations of workers, no matter how long they lived. But by exploiting loopholes, ambiguous regulations, and new accounting rules, companies essentially turned their pension plans into piggy banks, tax shelters, and profit centers.
Drawing on original analysis of company data, government filings, internal corporate documents, and confidential memos, Schultz uncovers decades of widespread deception during which employers have exaggerated their retiree burdens while lobbying for government handouts, secretly cutting pensions, tricking employees, and misleading shareholders. She reveals how companies:
- Siphon billions of dollars from their pension plans to finance downsizings and sell the assets in merger deals
- Overstate the burden of rank-and-file retiree obligations to justify benefits cuts while simultaneously using the savings to inflate executive pay and pensions
- Hide their growing executive pension liabilities, which at some companies now exceed the liabilities for the regular pension plans
- Purchase billions of dollars of life insurance on workers and use the policies as informal executive pension funds. When the insured workers and retirees die, the company collects tax-free death benefits
- Preemptively sue retirees after cutting retiree health benefits and use other legal strategies to erode their legal protections.
Though the focus is on large companies-which drive the legislative agenda-the same games are being played at smaller companies, non-profits, public pensions plans and retirement systems overseas. Nor is this a partisan issue: employees of all political persuasions and income levels-from managers to miners, pro- football players to pilots-have been slammed.
Retirement Heist is a scathing and urgent expose of one of the most critical and least understood crises of our time.
- Print length256 pages
- LanguageEnglish
- PublisherPortfolio
- Publication dateSeptember 15, 2011
- Dimensions6.25 x 1.25 x 9 inches
- ISBN-101591843332
- ISBN-13978-1591843337
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Customer reviews
Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.
To calculate the overall star rating and percentage breakdown by star, we don’t use a simple average. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. It also analyzed reviews to verify trustworthiness.
Learn more how customers reviews work on AmazonCustomers say
Customers find the book informative and well-documented. They describe it as an excellent piece of reporting about important issues that are difficult to understand. Readers find the writing style easy to read, explaining complex concepts in plain English. The book is considered a must-read for all Americans to understand the retirement crisis.
AI-generated from the text of customer reviews
Customers find the book informative and well-documented. They say it covers important topics in an interesting and informative manner. The author does an excellent job explaining the technicalities of complicated economic practices and policies in an interesting way.
"...Her information is well detailed and can be easily verified if you want to take the time...." Read more
"...Ellen Schultz does an excellent job of explaining the technicalities of complicated economic practices and policies in an interesting and..." Read more
"Gives details about what the majority of us know, or prefer not to know...." Read more
"This was such an instructive piece...." Read more
Customers find the book easy to read and informative. They say it's a must-read for anyone who has a social conscience, especially those planning to retire. The book provides an eye-opening look at what companies can do legally within their own walls.
"...in their respective political echo chambers, this is a book to read before you vote...." Read more
"Retirement Heist is an excellent book by Wall Street Journal reporter Ellen Schultz on a subject not often examined--how corporations plundered..." Read more
"...Its a good read for sure and if you have worked for some of these companies that are singled out you wonder "how could this happen" everything..." Read more
"This is one of the most important books I've read concerning our ongoing financial crisis...." Read more
Customers find the book easy to read and understand. They appreciate the author's straightforward explanations of complex concepts in plain English. The book covers the topic thoroughly and is detailed, without a liberal bias.
"This is an excellently written expose of what really happened to pensions and retirement accounts. It is painful to read but very enlightening...." Read more
"...The author does a great job explaining some very difficult concepts that allow the reader to follow the theft of working American pensions...." Read more
"...That said Ms Shultz style made this book easy to read and covered the topic very well...." Read more
"...This book explains in plain English how companies manipulate pension plans for their profit to the detriment of the plan participants and retired..." Read more
Top reviews from the United States
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- Reviewed in the United States on December 3, 2011As good as this book is , it is difficult to review.
For over twenty years corporations have employed numerous means, from the merely mean spirited to the deliberately illegal to convert retirement systems into income for the few. Clearly, one of the reason why the corporate right is so afraid of the term "income redistribution" is that they have to demonize the term even as they focus on "income distribution" meaning the ongoing process of pushing ever more of the planet's wealth into ever fewer hands. Somehow the same Americans who take pride in not believing corporation advertisements, eat up every word the same corporations pump-out when the subject is regulations, anti-unionism or just delivering on the promise of trickle-down.
This book details some of the more smarmy efforts that have been employed to "Profit and Plunder form the Nest Eggs of American Workers". To repeat them here is to emphasize my politics over the reading experience inherent to the book.
The book itself is a fairly easy read. Some explanations are complex, but even if you miss the details you can grasp the import of the concept. Others have noted that this book should have some examples of the equations used in tax law or determining retirement benefit amounts. This is a valid point. My suggestion that they should be in an annex, leaving the less technically adept reader with an uninterrupted read.
This helps to emphasize that this is not a technicians book. The irony here is that recounted examples of employees fighting back frequently revolve around individuals who had or learned the arcane ways of retirement calculations. In the case of IBM, the assumption by leadership that employees were not skilled in this type of problem solving was as ridicules as it sounds and cost IBM leadership more than some discomfort.
Given the tone of the national political debate, it may be that political right will ignore this book in droves. For those who want to hear more than what is already in their respective political echo chambers, this is a book to read before you vote.
Some one else has said it in an Amazon review: Corporations Bad, People Good. This is a valid summery. If you want examples, without getting drowned in the math, this is a good book.
- Reviewed in the United States on November 5, 2011I took this book with me on a week-long business trip intending to start reading it thru the week I was to be away. Because of late and long working hours during the week, I didn't start reading it until sitting in the airport Friday morning for my return trip. I started reading it at 11:00am and finished it just as we were landing at my home airport (1 connection in between), 4:30pm. I couldn't put the book down, the more I read the more it made me want stand up and scream. I look forward for ANYONE to try and disprove anything that Ellen Schultz's has outlined in this book; my money would be on Ms. Schultz's. Her information is well detailed and can be easily verified if you want to take the time.
While some of the information is very financially technical and sometimes difficult to comprehend (a major reason companies can get away with the manipulation of pensions), read it enough times and you will be able to follow the trail of deceit and lies used by corporations and consulting firms to use pensions as their personal "piggy banks."
I strongly recommend this book for anyone who is relying a pension, social security, or a 401K for their retirement years, the best bet might be to just stuff cash in a mattress, it's probably safer.
- Reviewed in the United States on November 4, 2013Retirement Heist is an excellent book by Wall Street Journal reporter Ellen Schultz on a subject not often examined--how corporations plundered pension funds.
In this book she investigates how the retirement benefits of millions of Americans vanished over the last two decades as imaginative corporate accounting practices massaged balance sheets, and shady legislation was put in place giving corporations the ability to use employee pension funds as private treasure chests for mergers, acquisitions, and spin-offs. The result was thousands of corporations reapportioning funds set aside for retirees, and retirement benefits written out, gone forever.
Schultz exposes why so many corporate pension funds were raided, how it was done, who lost, and who profited by it. She provides readers with an in-depth analysis of each step along the way.
This is an important book for anyone who expects to retire, whether with a pension or not.
Ellen Schultz does an excellent job of explaining the technicalities of complicated economic practices and policies in an interesting and informative manner. Yes, at times, it can become a tad dry, but it’s well worth your time to push through. You’ll definitely come away with a new understanding of an old problem, and probably resolve to keep a tight rein on your own finances as well.
Awesome work.
- Reviewed in the United States on July 29, 2014Gives details about what the majority of us know, or prefer not to know. As a person who currently is a 'pensioner' it gives pause for thanks from me, with sense of much caution and concern for the future, for myself and everyone who is not fully in control of any money put away for retirement. Probably should be read most by those least likely to do so, anyone 17 years of age and up. Of course, I come to my attitude as a baby boomer and recent retiree who once thought our government worked 'for us' common citizens and that even in the business world there was a sense of fairness. Anyone believing that today is living in a fools paradise.
Top reviews from other countries
Louis RohrReviewed in the United Kingdom on October 7, 20145.0 out of 5 stars After seeing the film "Freedom to Fascism" on u tube I had to get this book
The book was in great condition and arrived quickly not only that it is a great read for those wanting to know how the US government screws the America workers out of their pensions because the US corporations are in bed with elected officials. If Americans want to know more… then they should watch the film "Freedom to Fascism" available in u tube which explains why they do not have to pay their governments federal income tax primarily because there is no law in place requiring any one to pay it. Additionally, it is unconstitutional because the Supreme Court has ruled time and time again that the Federal Income tax is illegal unbeknownst to most Americans…home of the free and the naïve.
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VoltaireReviewed in France on May 27, 20125.0 out of 5 stars Comment taper dans la Caisse (de Retaites) !
Certes les lois françaises sont différentes des lois américaines et pareilles spoliations ne pourraient pas intervenir dans l'Hexagone.
Pour autant -globalisation oblige- ces "errements" amènent à des toussotements ici et là et fragilisent le système financier international. Ce livre apporte donc sa contribution à une meilleure redéfinition des circuits de fonctionnement des flux financiers et à la nécessité de gardes fous beaucoup rigoureux et étanches.

