I think it is 42K US retirees.GM is offering its 420 million pensioners a lump sum payment to go away.
Rockslinger as usual, is wrong.GM is offering its 420 million pensioners a lump sum payment to go away.
If I were an eligible GM pensioner, I would take the money and run. Never know if GM will go bust again. My broker has two retired Nortel clients and bankrupt Nortel cut their pension by 30%.I think it is 42K US retirees.
According to GM, this would cut its pension obligation by $26 billion.
Are you sure it wasn't 300% ?If I were an eligible GM pensioner, I would take the money and run. Never know if GM will go bust again. My broker has two retired Nortel clients and bankrupt Nortel cut their pension by 30%.
The whole idea of a defined benefit pension for life is a phryamid(sp) scheme. It only works if the number of active workers far exceed the retirees. Our public sector indexed pensions are unaffordable. Would you be willing to work until age 80 so your tax dollars can support a retired 57 year old teacher living the good life on a full indexed pension in Florida?The GM pensioners were bailed out by the taxpayer while the nortel pensioners were hung out to dry.
of course not, I think the GM pensioners should not have been bailed out, but also govt legislation must ensure pension plans are not allowed to be underfunded below a certain %. Personally I think ALL defined benefit plans will fall to bits when the bulk of the boomers retire and it will create a massive crisis. Personally I think the govt needs to 2x CPP to mitigate this.The whole idea of a defined benefit pension for life is a phryamid(sp) scheme. It only works if the number of active workers far exceed the retirees. Our public sector indexed pensions are unaffordable. Would you be willing to work until age 80 so your tax dollars can support a retired 57 year old teacher living the good life on a full indexed pension in Florida?