Originally Posted by
kronan
Variable plans are still a Defined Benefit plan and Management continues to assume the Longevity risk (ie--Pension pays out even if you live to 115)...unlike a DC plan (our B plan) where all you have is the pot of $$ you've accumulated, and if you spend too much or live too long...it runs out.
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And a COLA, added on to our Traditional A plan would've made it much more likely to be frozen or handed over to the PBGCC...just as many people feel the Lump sum provisions in Delta's plan resulted in their plan being handed over due to a large percentage of early retirees.
To address the second statement first, the company can't just hand the DB plan over to the PBGC. You know that, right? If the company goes into bankruptcy, they can ask a judge to get rid of any unsecured debt, i.e.. our DB plan. But, they can't just hand it over to the PBGC because they didn't fund it correctly.
As to the first statement quoted, why can't the company declare bankruptcy and ask a judge to get rid of the financial responsibility of the VB plan payments. What makes this any more likely to be around in the future.
I watched the latest slide show as well and couldn't find any reason to assume any risk in our A plan. Still a NO vote and hopefully a majority agree.