User Tag List

+ Reply to Thread
Page 1 of 4 1234 LastLast
Results 1 to 10 of 34

Thread: In unprecedented move, pension plan cuts benefits promised to retirees

  1. #1
    Original Ranter
    Points: 859,122, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 90.0%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Posting Award
    Peter1469's Avatar Advisor
    Karma
    496584
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    241,700
    Points
    859,122
    Level
    100
    Thanks Given
    153,223
    Thanked 147,594x in 94,422 Posts
    Mentioned
    2552 Post(s)
    Tagged
    0 Thread(s)

    In unprecedented move, pension plan cuts benefits promised to retirees

    In unprecedented move, pension plan cuts benefits promised to retirees

    This could trigger other pension funds to follow suit before they run out of money.

    A pension fund in Cleveland became the first plan to approve benefit cuts for current retirees — even though it is still years away from running out of cash. The move, some critics say, could open the door for other troubled pension plans to follow suit.

    The financially strapped Iron Workers Local 17 Pension fund proposed a plan for extending its lifespan by reducing benefits for workers and retirees. Now that the plan has received final approval, roughly half of the 2,000 participants will see their pension benefits shrink on Feb. 1. Benefits will be cut by 20 percent on average, but some retirees are expecting their monthly payments to be slashed by as much as 60 percent.
    ΜOΛΩΝ ΛΑΒΕ


  2. #2
    Points: 13,039, Level: 27
    Level completed: 44%, Points required for next Level: 511
    Overall activity: 0.1%
    Achievements:
    Social10000 Experience PointsVeteran
    KathyS's Avatar Senior Member
    Karma
    8157
    Join Date
    Dec 2016
    Location
    Texas
    Posts
    1,371
    Points
    13,039
    Level
    27
    Thanks Given
    4,822
    Thanked 1,600x in 838 Posts
    Mentioned
    26 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Peter1469 View Post
    In unprecedented move, pension plan cuts benefits promised to retirees

    This could trigger other pension funds to follow suit before they run out of money.
    That is such BS. They worked for it, they should receive it.

  3. The Following User Says Thank You to KathyS For This Useful Post:

    gamewell45 (01-29-2017)

  4. #3
    Original Ranter
    Points: 859,122, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 90.0%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Posting Award
    Peter1469's Avatar Advisor
    Karma
    496584
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    241,700
    Points
    859,122
    Level
    100
    Thanks Given
    153,223
    Thanked 147,594x in 94,422 Posts
    Mentioned
    2552 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by KathyS View Post
    That is such BS. They worked for it, they should receive it.
    The problem is that many pension funds are undercapitalized and some promised way more than they could expect to pay over time.
    ΜOΛΩΝ ΛΑΒΕ


  5. #4
    Points: 432,166, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 100.0%
    Achievements:
    50000 Experience PointsVeteranOverdriveSocial
    Awards:
    Frequent Poster
    Tahuyaman's Avatar Senior Member
    Karma
    307979
    Join Date
    Dec 2014
    Location
    Bremerton, Washington
    Posts
    183,462
    Points
    432,166
    Level
    100
    Thanks Given
    20,178
    Thanked 76,994x in 55,615 Posts
    Mentioned
    700 Post(s)
    Tagged
    1 Thread(s)
    Plus their workforce is dwindling.

  6. #5
    Original Ranter
    Points: 859,122, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 90.0%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Posting Award
    Peter1469's Avatar Advisor
    Karma
    496584
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    241,700
    Points
    859,122
    Level
    100
    Thanks Given
    153,223
    Thanked 147,594x in 94,422 Posts
    Mentioned
    2552 Post(s)
    Tagged
    0 Thread(s)
    Usually when a pension fund fails (or a company declares bankruptcy) the Pension Guaranty Corporation (or whatever it is called) takes over the pension and the retirees typically get 30 cents on the dollar. I believe it was Delta pilots that were shocked when they refused to negotiate and the company reorganized under the bankruptcy code.
    ΜOΛΩΝ ΛΑΒΕ


  7. #6
    Points: 23,893, Level: 37
    Level completed: 62%, Points required for next Level: 457
    Overall activity: 1.0%
    Achievements:
    SocialVeteran50000 Experience Points
    Newpublius's Avatar Senior Member
    Karma
    39140
    Join Date
    Mar 2013
    Location
    Boynton Beach, FL
    Posts
    7,313
    Points
    23,893
    Level
    37
    Thanks Given
    1,556
    Thanked 4,123x in 2,793 Posts
    Mentioned
    94 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by KathyS View Post
    That is such BS. They worked for it, they should receive it.
    Those pesky interest rates, the government borrows cheap, but many pension funds saw their rates of returns fall as their bonds returned less money than anticipated. Look, there's no free lunch, if these plans don't make returns on their investment that they were anticipating, the assets aren't there to keep the promises made.

  8. #7
    Points: 124,894, Level: 85
    Level completed: 64%, Points required for next Level: 1,156
    Overall activity: 0%
    Achievements:
    Social50000 Experience PointsVeteran
    Crepitus's Avatar Senior Member
    Karma
    1255215
    Join Date
    Nov 2014
    Location
    Wichita, KS
    Posts
    41,416
    Points
    124,894
    Level
    85
    Thanks Given
    17,385
    Thanked 13,440x in 9,812 Posts
    Mentioned
    510 Post(s)
    Tagged
    0 Thread(s)
    It's a $#@!ing ripoff.

    The company executives and shareholders should be the ones bearing the cost. The executives performed poorly and or gave false information of the pension values, the shareholders chose unwisely when picking stocks.

    The working stiffs are not responsible.
    People who think a movie about plastic dolls is trying to turn their kids gay or trans are now officially known as

    Barbie Q’s

  9. The Following 2 Users Say Thank You to Crepitus For This Useful Post:

    Green Arrow (01-29-2017)

  10. #8
    Original Ranter
    Points: 859,122, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 90.0%
    Achievements:
    SocialCreated Album picturesOverdrive50000 Experience PointsVeteran
    Awards:
    Posting Award
    Peter1469's Avatar Advisor
    Karma
    496584
    Join Date
    Jun 2011
    Location
    NOVA
    Posts
    241,700
    Points
    859,122
    Level
    100
    Thanks Given
    153,223
    Thanked 147,594x in 94,422 Posts
    Mentioned
    2552 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Newpublius View Post
    Those pesky interest rates, the government borrows cheap, but many pension funds saw their rates of returns fall as their bonds returned less money than anticipated. Look, there's no free lunch, if these plans don't make returns on their investment that they were anticipating, the assets aren't there to keep the promises made.
    Good point. The fed kept interest rates artificially low and that hurt savers and pensions.
    ΜOΛΩΝ ΛΑΒΕ


  11. #9

    tPF Moderator
    Points: 473,668, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 69.0%
    Achievements:
    Social50000 Experience PointsTagger First ClassYour first GroupVeteranRecommendation First ClassOverdrive
    Awards:
    Master Tagger
    DGUtley's Avatar tPF Moderator
    Karma
    200795
    Join Date
    Jul 2016
    Location
    Northeast Ohio
    Posts
    52,949
    Points
    473,668
    Level
    100
    Thanks Given
    17,070
    Thanked 46,065x in 24,888 Posts
    Mentioned
    887 Post(s)
    Tagged
    0 Thread(s)
    Absent benefit cuts, it will fall on the fund.
    Any time you give a man something he doesn't earn, you cheapen him. Our kids earn what they get, and that includes respect. -- Woody Hayes​

  12. #10
    Points: 23,893, Level: 37
    Level completed: 62%, Points required for next Level: 457
    Overall activity: 1.0%
    Achievements:
    SocialVeteran50000 Experience Points
    Newpublius's Avatar Senior Member
    Karma
    39140
    Join Date
    Mar 2013
    Location
    Boynton Beach, FL
    Posts
    7,313
    Points
    23,893
    Level
    37
    Thanks Given
    1,556
    Thanked 4,123x in 2,793 Posts
    Mentioned
    94 Post(s)
    Tagged
    0 Thread(s)
    Quote Originally Posted by Crepitus View Post
    It's a $#@!ing ripoff.

    The company executives and shareholders should be the ones bearing the cost. The executives performed poorly and or gave false information of the pension values, the shareholders chose unwisely when picking stocks.

    The working stiffs are not responsible.
    At one point prior to GM's bankruptcy, GM's plan had more retirees than GM had employees. The problem with defined benefit plans is that people were making unrealistic promises that ultimately couldn't be kept. They were making many of these promises when the life expectancy was 40 for christ's sake. Hyperbole of course, but extended life expectancy has strained these funds whose plans were contingent on much shorter life expectancies even 30 years ago.

  13. The Following User Says Thank You to Newpublius For This Useful Post:

    Don (01-29-2017)

+ Reply to Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts