Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Moving Ahead for Progress in the 21st Century
Old 11-30-2012, 07:23 AM   #1
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,980
Moving Ahead for Progress in the 21st Century

This article talks about a bill signed into law last summer that includes the pension stablization act. Read it over and decide if you believe this legislation is stabilizing pensions or is just more legislative slight of hand.

Seems to me we need a legislative simplification act so that future convoluted and voluminous bills are simplified and totally transparent in what they are actually accomplishing:

The Pension Destabilization Act | Bethany McLean
__________________

__________________
DFW_M5 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 11-30-2012, 07:36 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,396
+1 IMO, pension contribution requirements were weak to begin with, so anything that weakens them further, even if just temporarily, is not prudent to me.
__________________

__________________
pb4uski is online now   Reply With Quote
Old 11-30-2012, 07:50 AM   #3
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,406
If I were employed and covered by a pension affected by this measure I would not be happy.
__________________
MichaelB is offline   Reply With Quote
Old 11-30-2012, 08:22 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,396
Quote:
Originally Posted by MichaelB View Post
If I were employed and covered by a pension affected by this measure I would not be happy.
I think you could strike "employed and". I'm a participant in a DB plan and the notion of weaker funding requirements doesn't sit well with me but there isn't much I can do about it other than complain.

From the link, I had the impression that all DB plans would be affected by the act (but I read it quickly).

In my case the DB plan sponsor is pretty responsible so I'm not very concerned.
__________________
pb4uski is online now   Reply With Quote
Old 11-30-2012, 08:40 AM   #5
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,406
Quote:
Originally Posted by pb4uski View Post
I think you could strike "employed and". I'm a participant in a DB plan and the notion of weaker funding requirements doesn't sit well with me but there isn't much I can do about it other than complain.
Good point.

The act changes the interest rate companies must use to calculate their funding requirements. By allowing an average of the past 25 years, the rate right now is the best it will get for the foreseeable future. Companies will benefit today but future contributions will be more costly if interest rates rise.

If overfunding results from this calculation, it may be easier to withdraw the excess, or part of it.

PBGC contributions increase. Ths is good.

Here's a brief I found with some detail https://www.buckconsultants.com/port...-a-Reality.pdf
__________________
MichaelB 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


 

 
All times are GMT -6. The time now is 11:58 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.