My thoughts on the detriot big 3

[Flipx99 5,000+ posts]

I believe only the current retirees will still get their pensions if they go under.

I see. But their pensions and other benefits can still be reduced by contracts, correct?

 

[Flipx99 5,000+ posts]

Guess if the big 3 go bankrupt it won't be tax dollars that pay retiree's pensions...learn something new every day:

Bet there is an implicit guarentee if the premiums paid cannot or do not cover the obligations.

 

[Lugnutz 10+ year member]

I see. But their pensions and other benefits can still be reduced by contracts, correct?

Their health benefits can. Their pensions are locked into whatever contract they retired on, so they are on a fixed income.

 

[duece212 5,000+ posts]

I am pretty sure they are all. From my understanding, it is a forced insurance, similar to what a bank pays to the FDIC. Like I said, I don't know who all it insures.

http://www.pbgc.gov/

Sounds like current employee's pension accts, not just retirees are covered

 

[Flipx99 5,000+ posts]

Their health benefits can. Their pensions are locked into whatever contract they retired on, so they are on a fixed income.

I see. I wonder if that Pension Guarentee Corp can renegotiate the contracts. But if they do go bankupt, it won't be the big 3's problem anymore.

 

[Flipx99 5,000+ posts]

It appears there is still a max benefit.

 

[Lugnutz 10+ year member]

What do you mean a max benefit?

 

[Flipx99 5,000+ posts]

What do you mean a max benefit?

http://www.pbgc.gov/workers-retirees/benefits-information/content/page789.html

And the max is lower if your are in an airline.

Apparently, congress sets the pension.

I don't know how old your dad is, it looks like he may fall under the max and suffer no harm based on what you said his pension is.

 

[Flipx99 5,000+ posts]

I cannot see where current workers are protected.

 

[Flipx99 5,000+ posts]

Based on what I am reading, say you worked for 20 years one would not receive any pension benefits until 10 years later.

 

[Flipx99 5,000+ posts]

PBGC may not fully guarantee your benefits if your plan was created or amended to increase benefits within five years before its termination date.

interesting

 

[Lugnutz 10+ year member]

http://www.pbgc.gov/workers-retirees/benefits-information/content/page789.html
And the max is lower if your are in an airline.

Apparently, congress sets the pension.

I don't know how old your dad is, it looks like he may fall under the max and suffer no harm based on what you said his pension is.

He will be 62 in March. What does it mean by "termination" date? When the company goes under?

 

[Flipx99 5,000+ posts]

He will be 62 in March. What does it mean by "termination" date? When the company goes under?

termination date is when the company ends the pension plan, ie bankrupt.

However, there is no COLA with this payment. It is what it is when the insurance company takes over. This won't mean much for your dad, other than he gets nothing after 65. But if a person was say 50, then annuity wouldn't be worth much by the time they are 65 due to inflation.

 

[duece212 5,000+ posts]

Incase anybody is interested, the ceo's, uaw leader and others infront of the House today:

http://www.cspan.org/Watch/C-SPAN_wm.aspx

 

[AJ²06 5,000+ posts]

they should let those failing companies sink.

No reason to save them

IF business are allowed to succeed they have the right to fail.

sure its gonna cause a bad economic impact for some time say like 2-3 hard years, but bailing out bad companies only makes it bad longer, like 10+ years.

I believe the Chinese tried this same deal years ago [about 10 years ago] and they still have a hard time recovering from that.

I still dont get why we are paying those **** irresponsible CEO's