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Large pension fund files plan to cut retiree benefits under new law
I will answer "yes", that any of this is possible (pension fund crash). Not being an attorney, I am wide open for challenge. Although I sure won't go past this write about any of this.
Muni pension funds probably have some of the worst of all worlds. Old plans with lots of benefits, underfunded, longevity of retirees and fewer folks funding the pension fund. Too many munis supporting pensions find a larger share of their current budgets going to the support of pension funds.
Here is a taste of what happened to the bond holders of General Motors and a few other auto related folks during the big melt. The second entry gives a short and concise overview. You may recall these "bond" wars. Really ain't much safe in the long run, eh?
Central States Pension fund notice. Perhaps this plan was underfunded for many years. This would not be a new situation for pension plans, eh? Current funding is indicated at 80%.
Some of this is kinda like the infrastructure problem in this country............old, crumbling and not everyone/thing was being "paid forward". Maintenance and/or recovery from some of these problems will not be pretty, monetarily and otherwise.
@Catch22, All large firms are trimming back their pension plans and payout. This impact the retirees the most since many do not have 401(K) when they were working.
I entered the work force in late 90's when deferred pension plans were trimmed back. The talk about how the old plan versus the new plan, where the company contribute more to the old plan. In the end, they all will be impacted when the companies decide to change their payout calculation under stressful time. GM is a great example.
Comments
Not being an attorney, I am wide open for challenge. Although I sure won't go past this write about any of this.
Muni pension funds probably have some of the worst of all worlds. Old plans with lots of benefits, underfunded, longevity of retirees and fewer folks funding the pension fund.
Too many munis supporting pensions find a larger share of their current budgets going to the support of pension funds.
Here is a taste of what happened to the bond holders of General Motors and a few other auto related folks during the big melt. The second entry gives a short and concise overview. You may recall these "bond" wars. Really ain't much safe in the long run, eh?
Critical and Endangered Pension fund list.
Central States Pension fund notice. Perhaps this plan was underfunded for many years. This would not be a new situation for pension plans, eh? Current funding is indicated at 80%.
Some of this is kinda like the infrastructure problem in this country............old, crumbling and not everyone/thing was being "paid forward". Maintenance and/or recovery from some of these problems will not be pretty, monetarily and otherwise.
Take care,
Catch
I entered the work force in late 90's when deferred pension plans were trimmed back. The talk about how the old plan versus the new plan, where the company contribute more to the old plan. In the end, they all will be impacted when the companies decide to change their payout calculation under stressful time. GM is a great example.