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<blockquote data-quote="BMWMC" data-source="post: 4799278" data-attributes="member: 37461"><p>One of the many important questions to ask is what definition of under funding are they going to use? "Market" value or actual cash liquidation value. </p><p></p><p>In New England the pension plan is estimated to be under funded by 5 billion +/-. But, if you use a cash out valuation its almost 15 billion.</p><p> Its current percentage of cash assets to liabilities based on their latest 2019 IRS FORM 5500 is only 14,89%.</p><p>So, if the intent is to insure 30 years of benefit payments and the grant is a "one time" lump sum; it behoves New England to take at least 15 billion and make the plan whole. </p><p></p><p>The "rescue " money is not only granted as a lump sum but must be segregated and only those plans that have made cuts, under the 2014 Obama law which allowed these plans to cut benefits, can be restored. Yet, these segregated funds can possible facilitate benefit enhancements in healthcare subsidies, cola's and Christmas bonus funded by current annual employer payments into the unsegregated part of the plan. </p><p></p><p>What making these plans 100% solvent does is act as a huge organizing magnet as potential workers looking to unionize and see the prospect of a good and secure pension upon retirement worth a YES vote to joining the union.</p></blockquote><p></p>
[QUOTE="BMWMC, post: 4799278, member: 37461"] One of the many important questions to ask is what definition of under funding are they going to use? "Market" value or actual cash liquidation value. In New England the pension plan is estimated to be under funded by 5 billion +/-. But, if you use a cash out valuation its almost 15 billion. Its current percentage of cash assets to liabilities based on their latest 2019 IRS FORM 5500 is only 14,89%. So, if the intent is to insure 30 years of benefit payments and the grant is a "one time" lump sum; it behoves New England to take at least 15 billion and make the plan whole. The "rescue " money is not only granted as a lump sum but must be segregated and only those plans that have made cuts, under the 2014 Obama law which allowed these plans to cut benefits, can be restored. Yet, these segregated funds can possible facilitate benefit enhancements in healthcare subsidies, cola's and Christmas bonus funded by current annual employer payments into the unsegregated part of the plan. What making these plans 100% solvent does is act as a huge organizing magnet as potential workers looking to unionize and see the prospect of a good and secure pension upon retirement worth a YES vote to joining the union. [/QUOTE]
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