"May lose 40%; Plan 'might have to be liquidated and wound up"
A sad day. The sad developments in this story support the idea of greater oversight and perhaps more stringent regulation of private sector pension plans. As I recall how this once great pension plan organization has now fallen into such a state.
DB plans operate on the premise of a promise to pay - and as such are contingent on the continued health and prosperity of the sponsor company. For some time many of these large industrial companies have been at risk. The real burden of company failures is borne by those pensioners already retired and closest to retirement. It should be law that such retiree's pension obligations are "locked down" by insurance contracts at age 55 and older to guarantee their pension payouts. It should also be clarified that COLA adjustments for retirees must be separated and funded when granted and can not be amortized over all pension plan members, as is often the case. This would remove a huge burden that often plagues CAW negotiations and is a defacto expectation that there are "no second class" pensioners, when in fact they are.
The other solution is just to move to DC and forget about DB altogether.
Friday 13 March 2009
Tuesday 3 March 2009
Asteroid to have close brush with Earth
Here is list of all "asteroid-like" objects that have been recorded.
Subscribe to:
Posts (Atom)