Thousands face pensions blow-out

[mom cat]

Thousands face pensions blow-out


Turner & Newall workers fear they could lose their pensions
Up to 40,000 current and former workers of car parts maker Turner & Newall may lose part of their contributions to their company pension scheme.
On Thursday their pension pot was frozen by the administrators of its parent company Federal Mogul of the US.

Many are predicting that the scheme, which has a shortfall close to £875m, may be wound-up completely.

Federal Mogul sought Chapter 11 bankruptcy protection after T&N was brought down by asbestos claims.

Dr Ros Altmann, a pensions expert and government adviser, who has spoken to the trustees of the pension scheme, said the outlook could be bleak.

This is yet another example of how vulnerable UK workers are

Tony Murphy, Amicus


How I lost my pension overnight



http://news.bbc.co.uk/2/hi/business/3919199.stm

[LibLabUK]

1. Yup..

The greed of the fund holders seems to have left an awful lot of people in dire straits.

Thanks again, Maggie.

[cliss]

2. Now add to that:

1) The Aging of America. We know that the Baby Boomers are getting ready to retire. It's going to be massive: 45 million of them. Just imagine the strains they're going to put on medical care, retirement homes, etc.

2) Guess what this will do to Social Security? Forget the word 'Security'. This is poorly kept secret. It won't cover these huge numbers of people retiring.

3) Private pension plans are becoming a thing of the past. Many companies are opting to lay off people who have been with their company for decades, only to throw them out as they get ready to collect their pension. It's seen as a cost savings. These pensions will become a thing of the past.

4) The rest of us have to rely on our 401(k) pension plans. Many of these are tied to the Stock Market. Now, does it seem like a secure thing to rely on the market in order for me to buy my groceries when I'm 75? Think again.