Anonymous said:
Miller said that to keep TCP1 well funded, contributions will be needed in 2014. He cites interest rates as the cause for liabilities growth. What interest rate is he referring to? Interest rates have been at an all time low!
Miller said that to keep TCP1 well funded, contributions will be needed in 2014. He cites interest rates as the cause for liabilities growth. What interest rate is he referring to? Interest rates have been at an all time low!
Comments
If the economy goes into a very long recovery 15-20 years; I suspect the contribution will be substantial or the programs will have to be modified, or both. Remember, once you retire from TCP1 DOE does not have to prop up your personal annuity that is used to pay your benefits. If NNSA/LLNS/LANS have done what they wanted to do retirees will be on their own. If the annuity fails then POGOS will take it over and NNSA has no further obligation to prop it up. Of course it will still have to keep TCP1 solvent for those still working and have not retired.
Remember the cost estimations of today do not really apply to tomorrow; there just educated guesses or approximations. How is that been working for us.
BTW interest rates and liabilities are code for there is not enough money and there are profits to be made.
by 2014 long bond interest rates will be 6% mirroring predicted inflation.
LBJ inflated his way out of the great society/viet nam debacle and Obama will employ the same cheat with the bailout/afghani missteps.
NIce to be the world's reserve currency. We won WWII. We set up Bretton Woods, we print as much money as we like.....Yellen is well schooled in this...
Under LBJ through Carter rates went from 3%to 15%. Bernake/Gerither will start the the same devalation as soon as the economy allows....
Better to inflate away 1/2 of $15T than pay for it.
Go Giants!
The liability calculation rate of return based in the ERISA specified value of 5.5% per annum should be easy to achieve, with a 50/50 mix of diversified stocks and long term investment grade bonds, even in current markets, and it will return to the norm over time.
Further, the previous pension liability calculation should already contain all of the actuarial parameters for this closed pool. So, with all factors included or estimated based on actuarial assumptions, the total expected liability over the life of the plan is predictable (known with small uncertainty) and doesn't change much over time.
This ain't weapons science....
Does Miller know what he is doing?
Is he getting advice from Milliken and Madoff?
He's a weapons physicist, but I don't think he can add 2+2 without an error budget.
TCP_1 beneficiaries really need a representative on the investment committtee.
Yeah, your take-home salary is rapidly going DOWN at the NNSA weapon labs, one way or another. This is what NNSA wants, though. You can be sure of it!
For those that gloat on whether or not they chose TCP1 I will say this. My choice of freezing with UC will cost me a lot of money. I took that choice because I did not trust LLNS. But I am not going to do a happy dance should TCP1 run into severe problems. I have a great number of co-workers who took TCP1 and if it fails, my friends will be suffering. Should UC go into failure I would hope that my friends who chose TCP1 will not gloat over my suffering.
The one place where LLNS seems to have beaten UC to the punch is TCP-2. UC is floating a significant change in the plan where new hires will get a defined benefit plan that pays out much less than the current one. With TCP-2, not only will the pay be less but since it is not a defined benefit, once you're out the door, you are no longer on obligation.
The upper level management team of the "for profit" LLCs are watching out for their own backs and could care less about their employees!
Morale just sank a few steps lower. I didn't think it possible, but the LLCs have somehow managed to do it!
Heckavajob.
Guess which plan George selected for himself:
TCP1 ? wrong
TCP2 ? Wrong
Other? Yup ... A special deal from LLNS/UC.
October 26, 2010 9:43 PM
Well said!! Yours is probably the most well-grounded, rational, and realistic post made on this blog for many months. You aren't in UC-land any more, people! Get used to it. Pretend you work for a company where nothing matters but your abilities and your accomplishments (as defined by your boss). It's true. Welcome to the real world.
Gee, thanks for taking time out of your busy schedule to post a comment Geroge.
Don't worry when we're out of this recession in about 10- 15 years things might get back to par but in the meantime just keep contributing and hope you get something out of it as social security goes away little by little for all that have paid into it for 40 years while they gave it away to all the parasite we have in this nation from all over the world. It's all good, brotha.