Your pension fund healthy? Who knows?

[dixonge]

We consider ourselves *very* fortunate in this regard. TCDRS - rock solid.

[imoldernu]

Am sure that everyone who has, or is expecting a pension in the private sector, is familiar with the PBGC. Here's the Q&A FAQ page on the website, which provides a quick overview of what to expect "in the event of"...

FAQs - Insured Plans & Benefits at Pension Benefit Guaranty Corp

[W2R]

I'm a retired federal employee, so I think I'm probably OK in this regard. On the other hand, there is a lot of public resentment directed at federal benefits these days, including retirement, so who knows? Hopefully if there are any changes in the future, existing retirees would be grandfathered. My FERS "annuity" (=pension) is only in the mid 3 figures each month, but I do appreciate having that regular monthly deposit.

[brett]

In our jurisdiction we are entitled to a pension plan statement every two years.

The health of the fund is expressed in two ways. The first is funding percentage assuming an ongoing plan.

The second is the level of funding based upon an immediate wind up and payout of commuted values.

These two percentage funding ratios are always slightly different but they do provide and reasonable insight into the health of the plan.

[Focus]

Quote:

Originally Posted by imoldernu Am sure that everyone who has, or is expecting a pension in the private sector, is familiar with the PBGC. Here's the Q&A FAQ page on the website, which provides a quick overview of what to expect "in the event of"... FAQs - Insured Plans & Benefits at Pension Benefit Guaranty Corp

Thanks for linking to that. The concern, of course, is this:

U.S. GAO - High Risk: Pension Benefit Guaranty Corporation Insurance Programs

Quote:

PBGC’s financial future is uncertain, due in part to a long-term decline in the number of traditional defined benefit plans.... At the end of fiscal year 2014, PBGC’s net accumulated financial deficit was $61.8 billion—an increase of over $26 billion from the end of fiscal year 2013—and PBGC estimated that its exposure to future losses for underfunded plans was $184 billion. This dramatic increase in PBGC’s deficit was attributable to a crisis in the multiemployer program, the smaller of its two programs...

[tmm99]

Well, it looks like some pension funds are in HUGE trouble..
"This Is Going To Be A National Crisis" - One Of The Largest U.S. Pension Funds Set To Cut Retiree Benefits | Zero Hedge

[Calico]

Quote:

Originally Posted by Bigdawg 23 years military. If my pension isn't safe then none of them are. Did you all fund my pension by April 18th? Hope so. Good luck to you all.

I made my contribution to it on 4/18! Don't spend it all in one place!

Thank you for your service.

[ClassOf2010]

This thread made me look up Pennsylvania's latest pension numbers which are for the end of 2015.
The bad news is that the acc. funded % is 58% and the market funded % is 56%, down from last year's 61%.
The good news is that they passed a law in 2010 to try and get the unfunded liabilities back to a more normal level. This year PA is contributing 29.5% of payroll to the retirement fund instead of the required 4.25%. This percentage will increase for the next 2 years before it starts to drop. So at least they have a method of addressing the shortfall. I also noticed that it was 110% funded in 2007 but by 2009 it was only 70% funded. Apparently it was mostly caused by the great recession of 2008 although the years of no employer funding by Ed Rendell didn't help. Employees contribute 6.25% annually.

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[whatnot]

Just read DH Pension Funding notices. The Funding Target Attainment % is 101.55% with Adjusted Interest Rates & 80.42% without Adjusted Interest Rates.
It is invested 100% in Master Trust Investment Accounts, with a 60% Equity and 40% fixed income.
I have no idea if this is good, bad or just ok? Since we are anticipating approx. $40,000 a year beginning in two years when we retire - I would appreciate some feedback on what the above means. Thank you in advance for any guidance.

[Focus]

Quote:

Originally Posted by whatnot Just read DH Pension Funding notices. The Funding Target Attainment % is 101.55% with Adjusted Interest Rates & 80.42% without Adjusted Interest Rates. It is invested 100% in Master Trust Investment Accounts, with a 60% Equity and 40% fixed income. I have no idea if this is good, bad or just ok? Since we are anticipating approx. $40,000 a year beginning in two years when we retire - I would appreciate some feedback on what the above means. Thank you in advance for any guidance.

Note the quote in my first post about what appears to be the best way to look at a plan's status.

I'm still unsure, though, about what would be considered a relatively safe percentage, if there is such a thing.