Got my annual report from my Defined Benefit

[doc03]

Pension Plan. When I retired 3 years ago it was around 86% funded, last year it dropped to
just over 80% and this year it dropped to 74%. It is obvious the company is working on dumping the plan on the PBGC (Pension Benefit Guarantee Corporation). So what did our government do? They changed the way the funding is calculated so now it appears to be 84% funded again and the company is required to even put less in the plan. Has anyone else received such a notice? Who was responsible for that action anyway?

[iangmac]

1. Not quite

"It is obvious the company is working on dumping the plan on the PBGC (Pension Benefit Guarantee Corporation)."

That's silly. Why would your fund want to do that?! That's like saying a company wants to file chapter 7.

The %funded is an actuarial analysis and is big time dependent on how their investments perform as well as actuarial factors such as mortality tables and expected future returns.

84% is in very good shape. That is a green status. Worry when you are elbow 70% funded.

[doc03]

2. I have gone through this before I had one pension dropped on the PBGC already and it was a

Chapter 11 and yes many times a company wants to file bankruptcy. Companies file bankruptcy every day to get out of union contracts and employee obligations. It is only in the Green status because they changed the funding formula otherwise it would have been 74%. The report said the government changed the funding because of the low interest rates and they now base it on a 21 year average so instead of the company depositing $20 M in the plan they now only need to deposit $11 M.

[iangmac]

4. Fair enough

You were union though right?. Their pension trust fund would not want to dissolve as that would negatively effect the active members. I feel you are confusing the trust with a Public company's pension that WOULD want to get out of paying those benefits.

Your active union members are paying a higher fringe rate to ensure you and they have a pension going forward.

Don't be too hostile towards the trustees. They are doing their best in a bad economy with less work hours and bad investment returns. They should be through the storm and things will get better.

Union trustees are there for you!

[doc03]

3. You may think it is silly but the same company under a different owner petitioned the IRS

for a waiver on their pension obligations a few years ago. They were permitted to waive their pension payments for a couple years then the company filed bankruptcy and dropped the pension and our union contract. it ain't silly when you loose three pensions in your lifetime.

[iangmac]

5. Employer ya?

That was your employer that screwed you not the union and pension fund though ya?

I like this topic not arguing with you or anything.

[Sherman A1]

8. I would contact the trustees of the fund

or use the contact numbers to get a clearer understanding of any questions. I am sure that they can explain things much better than we can here. That said No, it is not silly when you lose any pension benefits under any circumstances and it has happened far too often.

[freshwest]

6. Was getting those reports more than once a year last year, talking about liabilities v. assets.

I started looking PBGC to see what my options were, as they kept quoting percentages, etc. They didn't bring the name up, but I wanted to see what would happen. There was a bunch of legalese that indicated they might pay nothing. It was a big shock had me upset for months.

Then I got a letter revoking all the previous letters, and that none of what we'd recieved was going to happen. The company had just finished a major change, moving back to the original city and reorganizing. It appeared the company had kicked the mutual fund company and put in several billions to make the pension plan whole, and everything would go exactly as promised in our contract. They also indicated that some of us on the defined benefit plan could get our benefits earlier if disabled.

What a relief.

This year they have only sent me one notice, saying they are being reviewed by the federal Labor Department for approval for the billions or if Labor wants them to instead put hundreds of millions annually to keep payments as promised. We worked under a union contract, so that may have something to do with that. They say that no matter what Labor says that they will pay us in full. Also, that neither share prices, profits, losses or any other factor will affect our defined benefit plan as promised.

I think that Obama put a lot of money into the PBGC to cover what was going on and changed some rules. There are millions o of people affected by these things that don't make the news but that Obama and his cabinet have kept their eye on.

I'm not sure what you company is planning, but it's possible you will be all right. I thought for sure last year that I was going to get screwed out of my pension and only get Social Security, and it was depressing.

Good luck in any case.

[4 t 4]

7. get in there if you have the time and fight like hell and

nobody's business. Fight to get what you deserve and fight for others coming up. This is now a test of wills and for every person that doesn't fight for their rights makes it easier for them to take it all. Fight like you really mean it and you will come out with more. I have 32 relatives that have gone through this one time or another and all they understand is a good fight! It's sad to say that but it is my truth, you now have to learn te game and the game is horrendous.