PBGC Update

[imoldernu]

Change in current guarantee date. Good and bad.

https://www.pbgc.gov/news/press/releases/pr19-12?utm_medium=email&utm_source=govdelivery

 

[imoldernu]

Although I expect that most here on ER, understand the difference between Single and Multiple Employer Plans, for anyone who is not sure, suggest you dig in, as MEP's look to be at risk beyond 2025.

 

[igsoy]

ugh. I only had 15 yrs in, so wasn't scheduled to get much at age 65, but now I probably won't get anything at all. Why were these pension plans allowed to project outlandish yearly returns of 8% for so long to pretend they were solvent when they were clearly not? It's ridiculous.

Luckily I was not counting on the money, but I feel for those who were.

 

[jimandthom]

ugh. I only had 15 yrs in, so wasn't scheduled to get much at age 65, but now I probably won't get anything at all. Why were these pension plans allowed to project outlandish yearly returns of 8% for so long to pretend they were solvent when they were clearly not? It's ridiculous.

Luckily I was not counting on the money, but I feel for those who were.

Are you in the Multi Employer Plan? Then yes you may have an issue. If you were in the single employer plan, the outlook is much better. It seems it may also depend on the finances of the plan at the time of the takeover.

My plan ended in 1990(?) and converted to 401k style. It was taken over by PBGC in 2002. At the time of the takeover we were advised by the employer that the old plan was 100% funded, none of the funding was based on company stocks or debt instruments.

 

[igsoy]

Yes Multi-employer... American Federation of Musicians. I've already retired from that, but too young to take early withdrawal. They've just entered critical and declining status, so couldn't even apply to PBGC before that, so the fund's not likely to get any help at this point. If for some reason PBGC gets more funding and our plan enters that program, at most I would get half my original amount.

If they have to try to cut benefits on their own, at most I'd get 1/4 my original amount. It'd be a miracle if I even got back the contributions that were put in in the first place.

I was just a freelancer, I really feel for those who were full time salaried musicians who planned on this for their whole retirement.

 

[pb4uski]

ugh. I only had 15 yrs in, so wasn't scheduled to get much at age 65, but now I probably won't get anything at all. Why were these pension plans allowed to project outlandish yearly returns of 8% for so long to pretend they were solvent when they were clearly not? It's ridiculous.

Luckily I was not counting on the money, but I feel for those who were.

I blame both the union officials and the employers who knew, or should have known that these pension plans were underfunded and did nothing.

 

[Bir48die]

Yikes!