Originally Posted by
Nugget#69
Back to the point of getting rid of the A-plan. This is not giving something away. The plan would be to replace it with something that has a cash value, which you own. I think this would be a gain. Meaning, if you choose to work until you're 65 and have a reduced life span because of it, at least you have the cash value to hand down. Currently you get nothing. Likewise if you choose to retire early there is no penalty, you just have to budget the value of the fund into your plans.
The whole question is how much should this fund be and how much would the company have to put into it to match the current A-plan payout.
Nugget, rule #1 is never negotiate with yourself as you have a fool for your adversary. I understand your concerns with the A plan, but attempting to proactively manage what has not happened and is not likely for a relatively long time is foolish. Work on increasing the B-fund while keeping the A. If the time comes where the A is under duress, then learn from the good and bad moves by the various carriers that had their A funds in trouble and negotiate the best transition program. We'll likely come out with more money that way. Those senior people(of which I am not one) you're worried about won't have a say/vote on how the plan is transitioned as they will be retired. I'm sure Huck's Uncle Bill has a few words to say about that.............