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Company canceling Pension plan. What can I expect?

I'm in a lot better shape than most. I'd planed on leaving at 55 (6 yrs) and becoming a outage worker and seeing the country. I don't know if they are going to screw the retirees or not. No word on what the union will do. Our contract doesn't run out until next year. An article in the paper said that EFH was headed for bankruptcy and was liquidating the fund to ease legal problems.
trying to stay positive
i_r_
 
An article in the paper said that EFH was headed for bankruptcy and was liquidating the fund to ease legal problems.
...
i_r_

For Eff sakes i_r that couldn't be more obvious. Ease what legal problems? That the fund is not segregated and has been embezzeled??? Take a day off work. See a Lawyer. Get YOUR money out. Do it yesterday.

Good luck.
 
For Eff sakes i_r that couldn't be more obvious. Ease what legal problems? That the fund is not segregated and has been embezzeled??? Take a day off work. See a Lawyer. Get YOUR money out. Do it yesterday.

Good luck.

+1 man...get your stuff out of your pension. They are obviously pillaging the company requirement on the pension whatever that is there, get out what you have put into your pension as soon as possible. If the company goes bankrupt you could loose all. Talk to an accountant about setting it up in a retirement fund, the government usually allow this so you don't get dinged with the taxes.

I'm not sure at 49 starting a company is in your best interest, save save and save a bit more. Your options when you sink all your savings into a startup are low if it fails. Hope the best for you.
 
The company is putting $200m into the fund to bring it up to be 100% funded. My 401K is the only thing that I've put money in, and they can't touch that. The pension plan was funded entirely by the company, but as I understand it, what they put in for me belongs to me. The fund is held by Fidelity, and the amount that is held for me is shown on my account. I'll get an appointment with my CPA to set up a Roth IRA and roll that money, if possible. But like I said, I can't do anything until the company makes a deal with the union. The union's stand right now is that we have a 100% funded pension plan and everyone should be calm.
I have to admit, when I saw what the total cash balance would be, I thought about a nice VMC, or maybe a fleet of hot dog carts.

Mydrrin:
How old was Col. Sanders when he founded KFC?

drinkin' a beer and just chillin' out
i_r_machinist
 
The company is putting $200m into the fund to bring it up to be 100% funded. My 401K is the only thing that I've put money in, and they can't touch that. The pension plan was funded entirely by the company, but as I understand it, what they put in for me belongs to me. The fund is held by Fidelity, and the amount that is held for me is shown on my account. I'll get an appointment with my CPA to set up a Roth IRA and roll that money, if possible. But like I said, I can't do anything until the company makes a deal with the union. The union's stand right now is that we have a 100% funded pension plan and everyone should be calm.

I'm a little fuzzy here. Are you union member or not?

Agree with the others: GET YOUR MONEY OUT ASAP!!!!!
 
The company i was involved with had a large payment coming due to the pension, in the past they were allowed to postpone payments. They had just recived millions in goverment assistance and within 24 hr that money was moved to another division. Then when they were denied an extension and the pension payment was due they filed bankruptcy.
 
I was in the same position, I left 12 years of seniority to my former employer, and with it 12 years of working toward a horse-shit pension that they offered. I had finished my machinist apprenticeship, and was looking for a new phase of my career. I applied for a teaching position at a Technical college in Wisconsin, and was hired. With it came an excellent pension plan. I worked for them for 30 years, and retired; so with Social Security and Wisconsin Teachers pension, and Medicare, I can get by comfortably.

If you have completed a State approved apprenticeship, and have a Journeyman's certificate, most Technical colleges will equate your apprenticeship and 7 verifiable years of experience as a Journeyman Machinist as equivalent to a Bachelors degree for the purposes of certification.

Maybe you can start your own shop and build your pension with your own contributions. If you would like to work for an employer that offers a pension plan, you better get the hell out of Texas and look for a more progressive area.

Lord Byron
 
The company i was involved with had a large payment coming due to the pension, in the past they were allowed to postpone payments. They had just recived millions in goverment assistance and within 24 hr that money was moved to another division. Then when they were denied an extension and the pension payment was due they filed bankruptcy.

I don't know about the big company bankruptcy system, but with an individual, they go back some time, perhaps 6 months, and if they see a transfer to avoid including assets in a bankruptcy, they will void the transfer and recover the money/asset. That could even include the sale of a home. The buyer of the asset could be S.O.L. and lose the whole purchase price.
 
Quote Originally Posted by PeteM View Post

Sure wish Mitt would tell us all how to put $100 million into an IRA, with annual contributions limited as they are.
If you have $100 million to invest, why are you on a machinists forum?

The issue with Romney is how the IRA increased in value to $100 million when the annual contribution limits to an IRA are about $6,000. He is either the luckiest investor ever or is playing a lot of games which would probably land us normal mortals in prison.
 
Quote Originally Posted by PeteM View Post

Sure wish Mitt would tell us all how to put $100 million into an IRA, with annual contributions limited as they are.


The issue with Romney is how the IRA increased in value to $100 million when the annual contribution limits to an IRA are about $6,000. He is either the luckiest investor ever or is playing a lot of games which would probably land us normal mortals in prison.

The bigger question if one is smart enough to turn $6K/yr into $100million is why would you use a traditional IRA? My understanding is if he used a Roth wouldn't his tax liability have been on the $6000, not on the $100million it turned into? From what I gather while he hasn't paid as much along the way on that account the US gov't will make out quite well on Romney's retirement.
 
I have worked for my self most of my life and the last stock market crash took care of my retirement plan. I have an ira that I put money in every year it lost 60% of its value.
 
Am I in the union? Yes
Am I trying to get whatever I can from the pension fund? YES
I can go back to my last employer and continue with the 13 years of pension I had at that place. Do I want to? No
Do I want to discuss politics? NO
I'm going to finish my coffee and go turn the ac on in my shop and make some chips.
have fun and thanks for the advice
i_r_machinist
 
The company is putting $200m into the fund to bring it up to be 100% funded. My 401K is the only thing that I've put money in, and they can't touch that.

Yeah, they can. If you leave a company, make sure you roll your 401K over from the plan administered by the company to one that is not affiliated with them. If you get laid off, the company is desperate to increase profits or may need cash for cash flow purposes. A big ol' honey pot of 401K funds might be too tempting. They could borrow against it, and go bankrupt.

Get your 401K out of the company plan the day you leave.
 








 
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