Originally Posted by
Myfingershurt
You’d be a fool to believe that any pension would survive if the market doesn’t keep growing. You guys act like pension managers are some kind of financial magicians that can make money appear out of nowhere just because it’s in a pension fund.
The pension manager doesn't have to make money appear out of nowhere, the company just has to contribute more which means less stock buybacks. That's the value in the pension vs a 401k.
Originally Posted by
sailingfun
Did you follow the American chapter 11 filing? They were unable to terminate their pension plans since they were adequately funded. In order to terminate a pension plan the company must file chapter 11. All kinds of bad things can happen in Chapter 11 as management cedes control to the creditors committee. Doug Parker came within 1 vote of snatching Delta. After filing the company has to show that “but for the pension plan” they can’t reorganize. Lastly the plan as mentioned must be severely underfunded.
and pension funding laws were also changed to prevent underfunding.