Originally Posted by
DR K
I will check out the videos again.
nowork - please please name one company that uses this type of DB plan and I will look at its fund literature or prospectus and show you how different it is. I am genuinely asking because this appears to be a unicorn plan.
Blue - how in the heckfire can this new stabilized fund scheme be considered a DB plan and invest in the same instruments as our current A fund yet have such radically different funding requirements per ERISA/PBGC? It’s like a real DB fund except that regulations don’t apply to it or (my guess) protect it!
These plans are different because the laws changed in 2006. Remember our current A plan was written under a different set of funding laws (also covered in the material). This is why our current pension has such a high liability cost. This was all covered in the material. Stay stuck in the past and your retirement will be left in the past. The union named a few organization that used a similar plan such as MLB. These plans are made to be tailored which is why its not a one size fits all.
Read and listen to the material and literally all these questions and conjecture are addressed.
So for the crowd that say lets just increase what we have, that sounds great. So lets say we increase the cap to 300. Awesome. Then you ask, well how long did that take? The answer is more than 20 years and 2 full bargaining cycles and one CBA extension. So how long would it take to improve the next one? Do you really want to stick to a plan that you have to negotiate for every cycle and have had no success on increasing? Well if you have one foot out the door you would love this because the group bailed you out on the way out the door. However, for those that have numerous years to go we are left holding the bag to constantly try to increase a pension that has had no movement up to this point.