Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
PBGC to pay A&P Underfunded Pensions
Old 03-17-2016, 06:54 PM   #1
Thinks s/he gets paid by the post
imoldernu's Avatar
 
Join Date: Jul 2012
Location: Peru
Posts: 4,616
PBGC to pay A&P Underfunded Pensions

The Pension Benefit Guarantee Corporation announced it will supplement Pensions for the A&P Plan, now that the Company is bankrupt.

PBGC to Pay Pension Benefits for A&P Grocery Chain Employees

The FAQ's about pension guarantees are here:

FAQs - Insured Plans & Benefits at Pension Benefit Guaranty Corp

If you are not completely sure of how your pension plan would be guaranteed or the date which the guarantee would take effect, it would be well to understand the rules which apply, as there could be a shortfall. The total that the PBGC will pay for the A&P conglomerate is nearly $300 million. The maximum individual payout from the PBGC is $57,500/yr, taken at age 65.
In any case, knowing the intricacies of the guarantee plan should be worth the time spent in reading the link... just in case.

Perhaps someone here could explain what would happen if the PBGC should not be able to cover the guarantees, since the PBGC is not governement funded. The PBGC currently funds pensions for 1.5 million people in failed plans and covers 10 million pensions.. The plan is expected to be solvent through 2025, an improvement from the 2014 projection of solvency through 2022.
__________________

__________________
imoldernu is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-17-2016, 07:11 PM   #2
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Quote:
The maximum individual payout from the PBGC is $57,500/yr, taken at age 65.
For what it's worth:
Those are 2013 maximums. For 2016 the maximums are $5011.36/month or $60136/yr., taken at age 65


Quote:
Perhaps someone here could explain what would happen if the PBGC should not be able to cover the guarantees, since the PBGC is not government funded. The PBGC currently funds pensions for 1.5 million people in failed plans and covers 10 million pensions.. The plan is expected to be solvent through 2025, an improvement from the 2014 projection of solvency through 2022.
There are some things that can be done. Note that the PBGC recently increased member fees to fund all these bankruptcy pensions.

But more likely that's where the politics start. There are no explicit guaranty's. Maybe you can get in line for help from Washington. Just remember that you'll be standing in line with Social Security/Medicare and other funding issues as well other underfunded pensions like the Post Office. The question is.... Who gets funded when the money runs out ?
__________________
MasterBlaster is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Noticed more people holding signs "need work or food" rayinpenn Other topics 3 05-03-2015 03:51 PM
Pensions, Buyouts, PBGC, RISK almost_there FIRE and Money 19 02-23-2015 10:54 AM
PBGC Broke - Who will pay your pension? imoldernu FIRE and Money 72 08-01-2012 10:17 PM
Underfunded pensions? Anyone here have their pension payments reduced? Frugalityisthenewblack FIRE Related Public Policy 37 02-09-2012 06:31 PM

 

 
All times are GMT -6. The time now is 06:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.