Not only are pensions quickly going bankrupt. The government agency
that backs up these pensions is, likewise, quickly going bankrupt!
Be sure you have a solid backup plan if you're in TCP1 and don't count on the PBGC to be there to help!
...............................................................
Financial Times - January 30, 2013
US pension insurer warns of rising deficit
By Norma Cohen, Demography Correspondent
The
finances of the US’s multi-employer pension schemes have deteriorated
so quickly over the past year that the body that insures them will
almost certainly run out of cash in 20 years, according to a new report.
The
chances of the Pension Benefit Guarantee Corporation – the publicly
created but privately funded body that insures the nation’s occupational
pension schemes – going bust went from 1 in 3 at the end of 2011 to
more than 9 in 10 by the end of 2012, a report prepared for the PBGC and
released on Tuesday said.
The woes of the PBGC are common to
pension schemes– and their insurers – in industrialised economies where
defined benefit pension schemes form a significant portion of retirement
benefit. Weak returns on assets after the 2008 financial crisis meant
schemes did not earn as much as they expected, while low bond yields
gave rise to much larger calculations of deficits. However, the PBGC
noted that the deterioration in the funding status for pension schemes
financed by groups of employers was down to a range of factors, one of
which was limits on the insurer’s ability to force employers to pay
their fair share of premiums.
24 comments:
Another doomsday caller.
We are not even able to predict what the loonies in congress will do over a time span of two month and you are concerned with 20 years. Get a grip, if you want to worry, worry about March 1st.
Please queue up the TCP-1 vs. TCP-2 rhetoric. It's been so long it has almost faded to silence.
You asked for it.
Oh what the hell. Lets just raise the employees contributions to 15% and increase that by 5% a year for the next four years. I wonder if TCP-1 is going to hell because Parney did not fund the $80M + he was supposed to gambling the economy was going to get better until Obama's reign. NOT! and it will not as long as you have santa clause funding those who don't work or say, "you owes me". Regardless, it was a bad gamble Parney and now you're all going to suffer for it. You should have put the money in the retirement plan instead of using it for experiments.
I'll bet Parney never releases the TCP-1 pension status for 2012. The market was near an all time high, and TCP-1 should have been back up to 120% funded by my back of the envelope metric.
Need a employee on the pension committee. Somethink is rotten.
We have no representation on or visibility into our *own* pension.
Which we're paying into!
What is it invested in? We don't know.
I don't understand how this is legal???
Anyone see the emails that recently came to lab employees who are still in 403B and DCP from UC?
Appears the UC is going to dump most of the Fidelity funds and force you into a UC Pathways "plain vanilla" fund by June unless you quickly get your money out of UC and into a Fidelity Brokerage link (which will greatly increase your mutual fund fees, of course).
Wonderful. What's next from UC? They appear eager to dump off their long-term employees in multiple ways.
February 4, 2013 at 9:46 AM
How about posting the actual e-mail you got with an e-mail and ph contact information for all to read
"UC is going to dump most of the Fidelity funds and force you into a UC Pathways"
I'm in UC 403b and DCP and received no such emails! Please post text!
thanks
Dated January 29th, it starts:
Important Changes to the University of California 403(b), 457(b), and DC Plans Fund Menu
At UC, we’re committed to providing opportunities that make it easier to choose and monitor your retirement investments. That’s why we’re simplifying the investment choices offered through the UC Retirement Savings Program—the UC 403(b), 457(b) and DC Plans.
What’s Changing
The fund menu for the UC Retirement Savings Program currently offers over 200 investment options. With so many choices, selecting the right investment funds for your future can be time-consuming and confusing. To make it easier for you to choose and manage your investments, beginning in March 2013, the fund menu will be streamlined to include only UC Core Funds and a selected list of institutionally priced mutual funds.
UC's "wonderful simplifying" equals "dumbing down" and less choice.
Don't you hate it when they cut your options and then try to sweetly sell it to you as an "improvement"?
Thanks for posting the info. Definitely will have to look into it.
Man, every where you look, things just keep getting worse...
- Low Rates Force Companies to Pour Cash Into Pensions -
WSJ – Mon, Feb 4, 2013 10:50 AM EST
Ford Motor Co. (F) expects to spend $5 billion this year shoring up its pension funds, almost as much as the auto maker spent last year building plants, buying equipment and developing new cars.
The nation's second-largest auto maker is one of a who's who of U.S. companies pouring cash into pension plans now being battered by record low interest rates. Verizon Communications Inc. (VZ) contributed $1.7 billion to its pension plan in the fourth quarter and—highlighting companies' sensitivity to this issue—Boeing Co. (BA) now reports "core earnings" to separate out pension expenses.
"It is one of the top issues that companies are dealing with now," said Michael Moran, pension strategist at investment adviser Goldman Sachs Asset Management.
The drain on corporate cash is a side effect of the U.S. monetary policy aimed at encouraging borrowing to stimulate the economy. Companies are required to calculate the present value of the future pension liabilities by using a so-called discount rate, based on corporate bond yields. As those rates fall, the liabilities rise.
..............
Funny, but I don't remember either LANS or LLNS "pouring money" from their corporate profit fees into our pensions?
Then, again, Bechtel has no real love for the employees of the NNSA labs. They are just a means of making a quick buck while they rape the place.
Parney stuck all of us with the pension bill (7% post-tax = 10-14% true cost to you depending on your tax bracket).
While he "gambled" with not making the LLNS $80m contribution to the pension.
What's clear: he's not in our pension, could care less about our pension and us.
This furlough is lining up to be yet another pension whack on both YOS and HAPC. In addition to the whack to take home pay.
Let's face it, Parney's in it for himself (and for Bechtel to whatever extent it helps him).
Truly a disappointment from all angles...
"What's clear: he's not in our pension, could care less about our pension and us."
Nothing new ... Miller got a deal to "extend" his UCRP pension (while the rest of us went to TCP1 or TCP2).
.. and more amazing, POTUS apparently believes the annual certification letters penned by these crooks and liars!
"Nothing new ... Miller got a deal to "extend" his UCRP pension (while the rest of us went to TCP1 or TCP2)."
Any way to verify this? If so, then it is a slap in the face at the hardworking employees at LANL who work under this weasel and his associated Frankenstein, hollow-shell corporation, LANS LLC. Did he get a special pension deal?
http://www.universityofcalifornia.edu/news/2006/salaries0606_lab.pdf
"Following his service at LANS and when he retires, the purchase of an annuity (or buyback of UCRP service credit if appropriate) in the amount necessary to compensate for
the loss in pension benefits attributable to his actual period of service at LANS rather
than remaining under the UC Retirement Plan, to be calculated by appropriately offsetting the amount of employer contributions that he will have received in the LANS
market-based benefit package"
This is in addition to all the bonus & perks ...
I believe GM got the same deal ...
Did he get a special pension deal?
February 6, 2013 at 10:14 AM
Yes, it is in the LLNS contract, as it was for LANS and Mikey. See "Key Personnel."
When the LANS TCP1 pension goes bankrupt and collapses (and it will), both Mike Anastasio and Charlie McMillian will be sitting fat & happy with no worries.
The skullduggery that now goes on at the "for-profit" NNSA labs is sickening to watch.
What is sickening to watch is the way posters submit their opinions as fact. You can always tell where the motivation is coming from by the way someone posts, please keep that in mind and don't let it sway what you believe to be true.
It's a fact that the pension protection for the director was in the contract.
What are you questioning/disputing???
"When the LANS TCP1 pension goes bankrupt and collapses (and it will)"
This is an opinion, not fact.
I agree, that's an opinion (a hypothetical scenario), but the conclusion that follows is also a fact:
If the TCP1 pension were to go bankrupt Anastasio's pension would be made whole by his contract.
If the TCP1 pension were to go bankrupt Anastasio's pension would be made whole by his contract.
February 10, 2013 at 8:58 PM
Not just him. All "key personnel" of the new LLCs who were originally UC employees were protected in the same way. Just as Bechtel protected its personnel who went to the LLCs. At LANL, anyone above Division Leader who chose to side with the UC/Bechtel/LANS contract bid and throw their effort to winning that contract was so protected by the contract.
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