Spiga

Defined Benefit Plans in trouble

But for some its already tooooo LATE
A defined benefit plan is one in which you are promised a specific monthly outlay that is paid out
of your employer's pension fund. Such pension fund are the subject of
much scrutiny lately as
450 out of Fortune 500 companies have under-funded pensions.
Why? Because they promised
their employees the moon and the stars to lock them in and
figured they worry about how to pay
for it later. So 90% of defined benefit plans are
not going to be able to deliver on the promises
made.
If you belong in such a plan, you should not take any comfort in knowing that the Pension
Benefit Guaranty Corp. (PBGC) is on the job. Ironically, that organization
overseen by the federal
government is broke. They too have $96 billion in under-funde
obligations and they are the bailout!
Even if you are lucky enough to get a bailout from the PBGC because your company's pension fund
is deemed insolvent, you will only see about 25 cents on the dollar of
what you were promised in the
defined benefit plan.

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