Gearhead Jim
Full time employment: Posting here.
Keeping in mind that nothing is truly guaranteed except death & taxes...
My former employer (United Airlines) went into Ch 11 a little while before I retired in 2005, and dumped all their pensions on the PBGC. Each employee group had a separate plan and they were kept separate by the PBGC. My own group's plan had enough assets that I'm getting substantially more (~37 % instead of ~20% of my original projection) than the PBGC guarantee.
So what does the PBGC do with that "extra" money being used to give me the higher monthly pension?
Is it all in Treasuries (I hope), or some other mix of equities (ugh) and bonds?
Can it be raided to make up future shortages in other plans, United or otherwise?
"No man's freedom or treasure are safe when the legislature is in session."
But some outcomes are more likely than others...
BTW, we also had a very good Defined Contribution plan that was actually enhanced during the bankruptcy, so we won't starve either way. But it would be nice to have some idea of the future.
My former employer (United Airlines) went into Ch 11 a little while before I retired in 2005, and dumped all their pensions on the PBGC. Each employee group had a separate plan and they were kept separate by the PBGC. My own group's plan had enough assets that I'm getting substantially more (~37 % instead of ~20% of my original projection) than the PBGC guarantee.
So what does the PBGC do with that "extra" money being used to give me the higher monthly pension?
Is it all in Treasuries (I hope), or some other mix of equities (ugh) and bonds?
Can it be raided to make up future shortages in other plans, United or otherwise?
"No man's freedom or treasure are safe when the legislature is in session."
But some outcomes are more likely than others...
BTW, we also had a very good Defined Contribution plan that was actually enhanced during the bankruptcy, so we won't starve either way. But it would be nice to have some idea of the future.