About pensions and the PBGC:

[trof]

In many cases when a company goes under the Pension Benefit Guarantee Corporation (PBGC) takes over the responsibility of continuing to pay retirees' pensions. It was created by the U.S. government in 1974.

But it does not necessarily guarantee the same monthly payment you may have been 'entitled' to under your (former) company's pension benefit.

There is a maximum monthly benefit they will pay, based on the year you retire and your age. For many that 'maximum' PBGC payment is much less than they have been receiving.

For most of us who are/were covered under a pension plan, the decision of if and when to retire depended primarily on how much monthly income we could count on.

To have that income significantly reduced, several years into retirement, works a great hardship on us.
Also, the PBGC is running a current deficit of nearly 11 billion dollars.

Chart of maximum payments:
http://www.pbgc.gov/workers-retirees/benefits-information/content/page789.html#2001

[sarcasmo]

1. I appreciate the link to that site, it will help my father the retired GM worker who is about to get

The big FU.

[trof]

3. My pension is small enough that I wasn't affected.

A friend lost about $1500 a month.

[Blue Diadem]

2. Yeah, it scares the hell out of us. DH's is in there and

we wonder if it will even be available when the time comes for his retirement. I know his plan had been fully funded when it was turned over to PBGC but I don't think that makes a difference.

[trof]

4. Yeah, the deficit they have scares me.

How bad do things have to get before the PBGC starts cutting back?