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Old 06-07-2019, 03:10 PM
DAVES DAVES is offline
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Default Nothing is perfect

Quote:
Originally Posted by tophcfa View Post
Just like the above post states, the PBGC, or Pension Benefit Guarantee Corporation, is a quasi Government entity which operates with the efficiency of the Government, which is self explanatory (and very scary). It's surplus, or ability to shore up unfunded pensions, is minimal compared to the potential liabilities it could face. If the stock market has a major correction, many pension funds will go belly up and could very quickly wipe out the ability of the PBGC to insure guaranteed minimum pension payouts. We have a pension that we "ARE HOPING TO" rely on as a major part of our retirement income. However, never make the naive assumption that the pension will be there forever. All we can do is HOPE that the assets backing our pensions, which are heavily invested in stocks, do not crash and burn. If that happens, so will our pensions. Fingers crossed!
A pension is managed funds. The manager assumes a number of new members coming in, the number of retirees and stock market returns. Members assume the promises will be kept. Members assume that the company and the industry will survive.

For those with a self funded retirement, you are perhaps more directly aware.

An older friend of mine. Perhaps, to be clearer an old event.
Jimmy was a member of the lithographers union and had a nice pension. As some might know that work, today, is mostly done overseas. Far to few new members coming in to fund the previously made promises. Jimmy got a letter that his pension had been cut in half. His financial world collapsed. Within a year or two, he and his wife passed away. One said stroke one said heart. YOU CANNOT PUT PENSION CUT AS A CAUSE OF DEATH.