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Surrending CS Pension?
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<blockquote data-quote="ok2bclever" data-source="post: 73959" data-attributes="member: 1356"><p>I received the 2004 Annual Report from CSPF today.</p><p></p><p>It states at the end of 2004 the plan had a positive gain (after all expenses) of almost a billion dollars (992, 397,130) for the year to an asset level of $18,717,532,696 as of December 31st, 2004 with $890,489,686 paid out in benefits.</p><p></p><p>It also stated (without any details of percentage, stats, etc) that the plan was funded enough to continue to qualify for the "minimum funding standards of ERISA" .</p><p></p><p>This of course means at the close of 2004.</p><p></p><p>What changes the politicos cause in these "funding standards", etc and how this will affect the fund, who knows.</p><p></p><p>Using some really crude and basic math if the fund has almost 19 billion and pays out less than a billion a year it could theoretically continue to pay out existing levels of benefits for 21 years.</p><p></p><p>That doesn't include further accrued interest and employer contributions which would cause it to be able to last that much longer.</p><p></p><p>In fact, it states employer/employee contributions for the year were just over a billion.</p><p></p><p>In other words, more employer and employee contributions alone went in, than benefits that went out.</p><p></p><p>That would make me think the fund could go on indefinitely as is, but that isn't the picture being painted by all sources, so the simple math must have some serious flaws or missing factors involved.</p><p></p><p>I would guess it's primarily the forecasted massive increase in the amount of employees retiring in the next decade from the baby boom generation, but I am uncertain if it's even that simple.</p><p></p><p>It does beggar the question if the pension falls below the "minimum funding standards" (current or changed) and we participants are dropped on the government dole at one/third our promised retirement monthly rate . . . what happens to that 19 billion?!?</p><p></p><p>Does the government get it, or what?</p><p></p><p>I mean, they talk about the fund possibly defaulting on the minimum funding standards in the imminent future, but the math shows we could get paid our full benefits for at least decades as is.</p><p></p><p>I could live with that (in fact, probably die with that). <img src="/community/styles/default/xenforo/smilies/group1/laugh.gif" class="smilie" loading="lazy" alt=":laugh:" title="Laugh :laugh:" data-shortname=":laugh:" /></p><p></p><p>Missing something here, obviously.</p><p></p><p>My2cents, wkmac, any thoughts, ideas?</p></blockquote><p></p>
[QUOTE="ok2bclever, post: 73959, member: 1356"] I received the 2004 Annual Report from CSPF today. It states at the end of 2004 the plan had a positive gain (after all expenses) of almost a billion dollars (992, 397,130) for the year to an asset level of $18,717,532,696 as of December 31st, 2004 with $890,489,686 paid out in benefits. It also stated (without any details of percentage, stats, etc) that the plan was funded enough to continue to qualify for the "minimum funding standards of ERISA" . This of course means at the close of 2004. What changes the politicos cause in these "funding standards", etc and how this will affect the fund, who knows. Using some really crude and basic math if the fund has almost 19 billion and pays out less than a billion a year it could theoretically continue to pay out existing levels of benefits for 21 years. That doesn't include further accrued interest and employer contributions which would cause it to be able to last that much longer. In fact, it states employer/employee contributions for the year were just over a billion. In other words, more employer and employee contributions alone went in, than benefits that went out. That would make me think the fund could go on indefinitely as is, but that isn't the picture being painted by all sources, so the simple math must have some serious flaws or missing factors involved. I would guess it's primarily the forecasted massive increase in the amount of employees retiring in the next decade from the baby boom generation, but I am uncertain if it's even that simple. It does beggar the question if the pension falls below the "minimum funding standards" (current or changed) and we participants are dropped on the government dole at one/third our promised retirement monthly rate . . . what happens to that 19 billion?!? Does the government get it, or what? I mean, they talk about the fund possibly defaulting on the minimum funding standards in the imminent future, but the math shows we could get paid our full benefits for at least decades as is. I could live with that (in fact, probably die with that). :laugh: Missing something here, obviously. My2cents, wkmac, any thoughts, ideas? [/QUOTE]
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