While the subject doesn't affect me personally, my children are all within ten years of expecting pensions based on current or past employment. Two of them will begin receiving pensions within the next three years. I am concerned about the safety of the promised pension benefits, and would like to be able to help them check on the risks they may encounter.
One of them is expecting a federal government pension, while the other is part of a State of Illinois plan. The unfunded liabilities of Illinois pension plans has risen to 130 billion dollars, with no expectation of improvement in the future.
Other children have pensions are backed by the Multiemployer Benefits Plan guaranteed by the PBGC. The current rate of funding for payouts from this too, is much below water, with additional cuts in maximum payout in the offing, and a limited timeline for the current assets.
https://www.thebalance.com/is-my-pension-safe-2388790
The worry comes to the fore, with the recent report that 16,000 former Sears Employees in Canada may be left pensionless in the wake of the company. While the situation is different, the distress that this is causing is heart rending. More here:
https://www.thestar.com/business/2018/01/20/will-16000-sears-canada-retirees-see-their-pensions.html
While not the same situation as in the U.S. PBGC, the wider explanation in the article closely parallels the potential effect on the pensioners here.
For those who do, or will receive pensions, how do you measure the safety of this income stream?
One of them is expecting a federal government pension, while the other is part of a State of Illinois plan. The unfunded liabilities of Illinois pension plans has risen to 130 billion dollars, with no expectation of improvement in the future.
Other children have pensions are backed by the Multiemployer Benefits Plan guaranteed by the PBGC. The current rate of funding for payouts from this too, is much below water, with additional cuts in maximum payout in the offing, and a limited timeline for the current assets.
https://www.thebalance.com/is-my-pension-safe-2388790
The worry comes to the fore, with the recent report that 16,000 former Sears Employees in Canada may be left pensionless in the wake of the company. While the situation is different, the distress that this is causing is heart rending. More here:
https://www.thestar.com/business/2018/01/20/will-16000-sears-canada-retirees-see-their-pensions.html
While not the same situation as in the U.S. PBGC, the wider explanation in the article closely parallels the potential effect on the pensioners here.
For those who do, or will receive pensions, how do you measure the safety of this income stream?