https://www.pbgc.gov/news/press/releases/pr19-01
7 replies (most recent on top)
Bailing out pensions is what PBGC does. That’s literally the reason for it’s existence. The congressional committe assumed worse case for most of the plans they examined, ie, PBGC taking over ALL of them. They’re not all going to fail, and IIRC PBGC drastically raised the insurance rates on pension plans it may have to backstop in the future as a result. The tax payer isn’t going to shell out for this, your fantasies aside.
Yeah right. That's why we literally formed a Congressional committee last year to bail out the more than 200 pension plans in government receivership that are going to go broke. You're just wholly spouting in ignorance here, and you can't fight math.
If you had bothered to read the link, @1aws, you and the other clueless right-wingers who keep ranting about "taxpayers" would have seen this bit:
"PBGC receives no taxpayer dollars. Its operations are financed by insurance premiums, investment income, and, for the Single-Employer Program, assets and recoveries from failed single-employer plans."
Every company that offers pension plans that haven't gone bankrupt yet pays into the PBGC fund. They manage that money to cover the ones that do go bankrupt. They've been planning for Sears to fail for the past 2 years so it is already covered.
Based on actuarial tables, the pensions will ultimately cost around $4B, and Sears was $1.4B short. Taxpayers will pay the difference. His plan was to screw the taxpayer the day he acquired Sears. He had plenty of opportunities to cover that deficit, but bought back Sears shares, created Lands End, Seritage, etc. Instead.
Oh, ok, thank you for the info.
https://www.pbgc.gov/news/press/releases/pr19-01
https://www.pbgc.gov/Sears-QA
"PBGC covers Sears’ two pension plans under its Single-Employer Insurance Program. Benefit accruals under the plans have been frozen since 2005. PBGC expects that its guarantees will cover the vast majority of pension benefits earned under these plans."
"Termination of the Sears pension plans [and the PBGC taking them over] will not have a significant effect on PBGC's financial statements because the claim was previously included in the agency's fiscal year 2017 and 2018 financial statements, in accordance with generally accepted accounting principles."
Only the miniscule amount of highly-paid employees who have a pension over $65k/year will lose anything,
What does this mean? Will i only get 64% of the amount when the PBGC takes it over?