markhutch

While at a birthday party today, I had a chance to talk to my wife's uncle who is a retired UAW worker. He was very concerned about what might be going to happen with the pensions of millions of workers at the big three auto companies. He's heard talk that if any of these companies go into bankruptcy, then their future pension payouts could be in jeopardy. Anyone have any good information on what might happen to retirees pensions if this should happen? Thanks in advance.

P.S. Please move this Stacy if I put it in the wrong section.

Stacy94PGT

Moved to Off Topic...

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Stacy94PGT
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....

JohnnyO

Pensions are guaranteed by the Federal government's Pension Benefit Guaranty Corporation (it's like an FDIC for pensions). However it is likely they will not pay out the full amount, especially as more and more big companies default.
Happened to thousands of steelworkers and airline workers where I live, tell your wife's uncle to join the club.

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markhutch

Thank you for the reply. Your comments are what I expected would happen in such a situation. I feel for folks that are going though these problems in what should be the relaxing part of their lives.

Ohio XB

The Pension Benefit Guaranty Corporation is already deeply (billions) in the hole. If the pensions were turned over to the government the retirees would get a fraction of their regular amount.

GM is not going into bankrupcy. Only the media, who loves a story, has stated that and that was based only on investors buying insurance on their GM stock and was the conclusion the media came to.

If Delphi workers go on strike due to the 50-60% slash in wages that Mr. Wagoner wants then that could possibly, in my opinion only, cause GM to go into bankrupcy.

Ford has their pension fund paid for, or rather there is cash in that account.

The problem though is that the Big 3 want to change retirees benefits. When these people retired they had a contract in hand, agreed to and signed by the Big 3 and the UAW. It outlines what their lifetime retirement benefit is, nothing left to doubt. NOW that is going to be changed. If this is allowed then it means that NO contract ANYWHERE means anything. It was a closed, signed, and ratified deal.......done. How can this happen?

So from now on you can get out of a loan contract with your bank, a service contract with your cell phone service provider, or even a marriage without one utterance of doubt. Just say "Precedent was set by GM, Ford, and Chrysler and the US government approved it because the Labor Department did not contest it." It's ok, the contract doesn't mean anything.

I am a Ford worker and the present employees expect to have to give up something and is willing to give up several dollars an hour and contribute more to healthcare benefits particularly to keep retirees from being screwed. I guess when the big 3 need cash they need to get it from people that are getting $1,000 a month to live on.

By the way, when the retiree is elligible for Social Security their income does not go up by the amount of Social Security, rather that amount is deducted from their pension. The retiree ends up getting no more total a month though they are entitled to their Social Security and the Big 3 company gets to keep that much more money.

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markhutch

Thank you for the feedback, folks!