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Old 04-13-2014, 12:47 PM
 
29,772 posts, read 34,856,103 times
Reputation: 11681

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This is FYI for those with pension based on multiemployer plans. I know it will become a bashing of pensions eventually but folks impacted need to know so they can find out about their plan and take what ever steps they can.

http://dealbook.nytimes.com/2014/04/...=blogs&hp&_r=0

Quote:
The pensions of millions of Americans are being threatened because of trouble in a part of the retirement world long considered so safe that no one gave it a second thought.

The pensions belong to people in multiemployer plans — big pooled investment funds with many sponsoring companies and a union. Multiemployer pensions are not only backed by federal insurance, but they also were thought to be even more secure than single-company pensions because when one company in a multiemployer pool failed, the others were required to pick up its “orphaned” retirees.

Today, however, the aging of the work force, the decline of unions, deregulation and two big stock crashes have taken a grievous toll on multiemployer pensions, which cover 10 million Americans. Dozens of multiemployer plans have already failed, and some giant ones are teetering — including, notably, the Teamsters’ Central States pension plan, with more than 400,000 members.
If you are in this boat, the best of fortune for you and your family!
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Old 04-13-2014, 01:29 PM
 
Location: Great State of Texas
86,093 posts, read 72,479,637 times
Reputation: 27565
I first read about those multi-employer plans when the Hostess bankruptcy was in the news.
Hostess owed those various pensions over $2 billion.

The PBGC had to step in and take over the Hostess drivers' pension payments because that drivers union didn't have the funds to pay it themselves.
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Old 04-13-2014, 02:01 PM
 
29,772 posts, read 34,856,103 times
Reputation: 11681
Quote:
Originally Posted by HappyTexan View Post
I first read about those multi-employer plans when the Hostess bankruptcy was in the news.
Hostess owed those various pensions over $2 billion.

The PBGC had to step in and take over the Hostess drivers' pension payments because that drivers union didn't have the funds to pay it themselves.
Yup and PBGC is going broke.
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Old 04-13-2014, 05:35 PM
 
Location: Florida
4,358 posts, read 3,694,371 times
Reputation: 4084
Unfortunately the managers of a lot of plans either over promised or under estimate the funding necessary. Hard to see how a plan can payout all most as much as you earned in your working career.
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Old 04-13-2014, 07:15 PM
 
48,516 posts, read 83,901,398 times
Reputation: 18049
Quote:
Originally Posted by TuborgP View Post
This is FYI for those with pension based on multiemployer plans. I know it will become a bashing of pensions eventually but folks impacted need to know so they can find out about their plan and take what ever steps they can.

http://dealbook.nytimes.com/2014/04/...=blogs&hp&_r=0



If you are in this boat, the best of fortune for you and your family!
Anyone who doesn't know the state of their pension isn't in aq good plan.Most send reports of audits yearly. If not they are otherwise available. to people in the plan.
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Old 04-13-2014, 07:44 PM
 
Location: Los Angeles area
14,018 posts, read 17,729,443 times
Reputation: 32304
It can be tragic when people have been counting on a "sure thing" which turns out to be not so sure after all. This shows the wisdom of having at least a second leg to one's stool, i.e., not putting all one's eggs in one basket. Enron employees who had almost everything in company stock learned the hard way, as did those heavily invested with Bernie Madoff.

But the other side of the coin is that some pensions really are secure; I would consider federal retirement one of those. (No, I am not a federal retiree). Many of the state systems are fairly solid too - they aren't all like Illinois and New Jersey.

Cities and counties can legally file for bankruptcy, whereas states cannot. That's a pretty significant difference. I feel sorry for City of Detroit retirees, who may have worked a lifetime in good (if naïve) faith.

And of course ALL private sector companies and unions can file for bankruptcy too, which is what this thread is about.
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