Projected Pension Shortfalls , A System Going Under?

A System Going Under?
Projected Pension Shortfalls Turn Focus to Reform
By Albert B. Crenshaw
Washington Post Staff Writer
Sunday, October 19, 2003; Page F01


During his 35-plus working years at Bethlehem Steel in Baltimore, Melvin Schmeizer endured blazing heat and freezing cold, layoffs and odd shifts. But by volunteering for tough jobs and overtime, he boosted his income and, ultimately, his pension, to $2,850 a month when he retired in 2001.

But Schmeizer's retirement plans were knocked out cold last year, when Bethlehem went into bankruptcy and the Pension Benefit Guaranty Corp. (PBGC), the government pension insurance arm, took over the company's pension plans. And while that means Schmeizer's pension will not vanish, it will be cut to $1,700 a month.

Schmeizer, 56, observed wryly to a Senate committee last week that company and union officials had assured Bethlehem workers that "the sky would have to fall" for them not to get their full pensions.

"Well, the sky did fall," he said.

In fact, the sky is falling for a good number of American workers. Or the ship is sinking. Or any number of other metaphors for looming disaster, all of them applicable to the state of America's private pension system.


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http://www.washingtonpost.com/wp-dyn/articles/A44596-2003Oct18.html

Reform calls come at a time when "projections" for returns were to agressive and companies need to fund ....this takes away from earnings.

In the "stock market hay day" these same companies used pension "surplus" to inflate earnings.

Can't have it both ways.

I seem to recall the #1 goal of corporate raiders was to drain capital from 'overfunded' pension plans. Appears the strategy is paying dividends.

You work your whole life and in the end they f*ck you over.

PBGC took over when TWA went out of business. My pension is below the max that PBGC will pay, so I haven't lost anything...so far.
Many of my friends who qualified for higher pensions lost $1000-$2000 per month. That's a hell of a hit on what you thought would be a lifetime income.

My pension, I always thought, was guaranteed. The company is still going strong but what happens if it fails? Now I'm really frightened.

Who negotiates for retirees? Since I left I have no contact with the company. None of the nice little "employee newsletters" to keep everyone informed. No access, actually very little access, to Human Resources people. Their retiree benefit department is outsourced. After 25 years with the company it was hard to lose all contact with it. Now I worry that no one is speaking up for the retirees. Scary!

is to never let anyone become vested in any type of corporate sponsored/contributing retirement pension/savings plan. It's not an isolated case, which all those people who feel so organized and prepared will find out very soon, whenever the BFEE has drained out SS with their wars against Middle America and the ME as a start though I suspect the plan includes every continent of the globe.

Mr Schmeizer that he's even getting anything at all. It's happening all over the world as carpet baggers and corporate raiders plunder pension funds and the unacceptable face of capitalism is allowed it's unparalleled run of lawlessness, aided and abetted by right wing governements.

Until those that govern us, politicians etc are made to sufer the same the system won't change.

Pension funds are money that the worker has worked for and already owns..if it disappears it's stolen and is the most cruellest of thefts..those involved should be sent away for as long as can be. But don't hold your breath