I am a pension receipient of a multiemployer Plan for a union staff Just got notice that they are underfunded for this yr, so using 2008 assets (correct word?) numbers. However, sent notice of potential reduction of pension benefits. How much advance notice need the union give us before cutting the checks down?
Last part of question : sorry, but very upset:
I looked at the payments guaranteed by PBGC. Could I really get a 2/3 cut in my check?
Thank you very much.
Full Version: underfunded Plans
kate,
Did you try contacting them at the address or phone number on the notice?
Due to the dive in the stock market, most plan ARE drastically underfunded.
Note also that you will get a lot more response if you re-post your question in the Defined Benefit section
Did you try contacting them at the address or phone number on the notice?
Due to the dive in the stock market, most plan ARE drastically underfunded.
Note also that you will get a lot more response if you re-post your question in the Defined Benefit section
QUOTE (RCK @ May 4 2009, 05:53 PM) 
kate,
Did you try contacting them at the address or phone number on the notice?
Due to the dive in the stock market, most plan ARE drastically underfunded.
Note also that you will get a lot more response if you re-post your question in the Defined Benefit section
Did you try contacting them at the address or phone number on the notice?
Due to the dive in the stock market, most plan ARE drastically underfunded.
Note also that you will get a lot more response if you re-post your question in the Defined Benefit section
Thank you, I did email waiting for eresponse.
I will do as you suggest concerning resposting
Thank you very much, .
Kate
Kate,
Depending on the notice, the "2008 assets" could be the beginning or end of the year. If they are Jan 1, 2008 for example, they would not reflect the recent market loss. If they are as of the end of 2008, that could be most of the reason why they are underfunded.
I do not work on multiemployer union plans that often, but this is what I have seen in single ER pension plans. Plans can be underfunded for many reasons, and some of them are not a big deal. The PBGC will step in for a few reasons. A typical reason that I have seen is when the plan is underfunded and the company is in trouble. For example, if the company goes bankrupt and the plan is underfunded, the company may not be able to pay for all the benefits. Then the PBGC will guarantee certain benefits, which for you could be 2/3rds of the original benefit. With that said, the PBGC typically does everything within their power to get the company to pay for the benefits before they have to get involved.
This is just my opinion, but if you are concerned, I agree that you should contact them and try to find out exactly what is going on and what the notice is specifically for.
Depending on the notice, the "2008 assets" could be the beginning or end of the year. If they are Jan 1, 2008 for example, they would not reflect the recent market loss. If they are as of the end of 2008, that could be most of the reason why they are underfunded.
I do not work on multiemployer union plans that often, but this is what I have seen in single ER pension plans. Plans can be underfunded for many reasons, and some of them are not a big deal. The PBGC will step in for a few reasons. A typical reason that I have seen is when the plan is underfunded and the company is in trouble. For example, if the company goes bankrupt and the plan is underfunded, the company may not be able to pay for all the benefits. Then the PBGC will guarantee certain benefits, which for you could be 2/3rds of the original benefit. With that said, the PBGC typically does everything within their power to get the company to pay for the benefits before they have to get involved.
This is just my opinion, but if you are concerned, I agree that you should contact them and try to find out exactly what is going on and what the notice is specifically for.
Would you post a copy of the notice, blanking out the personal and company info?
Prospect Avenue, by any chance?
Prospect Avenue, by any chance?
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