Originally Posted by
Planetrain
Yeah, Im still a no-go on a DB.
This thing reeks of a Ponzi scheme. The old guys who go through first get their $$$, fast forward 20-30 years and whoops the company is bankrupt, whoops the market is down: you get the lousy variable benefit, whoops there is fraud, whoops there are high fees, whoops they changed the tax laws and it is no longer an advantage; all the while paying a benefit that is less than market returns.
Money earmarked for a DB, even if its additional to DC, is money they could have paid us either straight cash or somewhere else more efficiently in the contract like health insurance premiums, work rules, training pay, etc.
DB is still a huge gamble that even on a good day, pays less than market returns.
I doubt anyone is talking a retroactive DB plan where the company tosses a couple billion into a DB fund. I suspect it would simply be a accrual going forward. The old guys would get very little. Perhaps there might be a small plus up in years under the plan but anything more would be very expensive. The young guys would be the ones seeing the benefit.