Your Pension Thoughts

[beentheredonethat]

Multi-employer pension funds are intended to be operated forever.

If every Contributing Employer withdrew at the same time, (called a "mass withdrawal"), the fund would continue paying out monthly pension checks for as long as its asset pool lasts.

In Central States' case, for example, that would be until their existing $19.8 billion is gone. Of course, many of those withdrawing employers would owe Withdrawal Liability Payments to the fund so (assuming they paid them) that would add billions more to the pile. When all the money is gone, the PBGC would step in (if it is itself still solvent) and retirees would continue receiving monthly checks, but at a much reduced amount.

Sorry but some facts are wrong. If in your scenario the fund is going belly up (assuming all companies go out of business or pull out or whatever). If the fund is at fully funded, it will run out of funds at the same time the last of the retirees dies. However if it is underfunded, then the PBGC will take over right away and the reduced pension checks start immediately. They won't wait til all the money is gone and then start paying. There have been many cases where the PBGC takes over funds and the assets of the fund is given over to the PBGC.

 

[dannyboy]

There are many drivers that live paycheck to paycheck. No matter how much these driver make, the story would still be the same. For those people, it is a blessing that the company and union have a pension for that person, because they never plan past this weekend.

Other drivers find things to do that add additional money to their income, and retirement years. Just to name a few things, one driver here has a used car lot, another a plumbing supply company, several own multiple real estate businesses, and the list goes on and on. And many of these also have 401K's that will add to the mix, so they are not dependent on just retirement or SS.

The person that waits for a windfall without planing is gambling with his whole future. Its a very bad choice, but too many these days do just that.

I dont trust UPS with my future, I sure dont trust the teamsters, but most of all, I dont trust our gooberment at all. And you can see with what is going on right now, the working stiff always gets the screw.

d