The 10 Biggest Failed Pension Plans

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Pensions can be 'closed'.
IBM, a big local employer here for the last 30+ years, closed their 'defined benefits' plan to new hires years & years ago. New employees would get a 'defined contributions' (401k) plan. A few years ago they further announced that the plan would now be closed to further contributions & all future contributions would be 401k. This also applies the public retirements. I'm entitled to full retirement when my years of service plus age equals 80. I also have no limit on retirement pay %. I can actually receive over 100% if I want to work long enough! New hires have to get to 85 instead of 80 & are capped at 80%.

Phil of AZ 4:10PM November 15, 2010

it is all going down the remedy is a court of law not a court of logic, a suit is only as good as the depth of his pockets, if there is nothing there what lawyer will persue it? they bank on this , let's review steal someone's pension and you can defend your self in court steal anything else you go to jail america , america, america why not do away with pension and GET YOUR WHOLE PAYCHECK AFTER TAX AND listen to jim crammer invest your own money your way pay your own pension sucker

henry of MO 9:12PM September 08, 2010

I notice social security is NOT on this list. In spite of all the lying and fear mongering by "financial experts and advisors", social security is secure for decades and would of cousre be even more secure, and generous, if incomes over $106,000 were not exempt from social security taxes.

upwinger of CA 10:45PM September 05, 2010

I work 8 years for a mid west construction equipment manufacture that bought my division in 1999 I started in 2000. The parent companies people got defined pensions and our group didn't. Our pay check had the parent companies name on it and my W-2 had there name on it. All other benefits were the same. I took some class in business law and it seem similar to Adverse Selection. Can they do this

Ron of CA 1:57PM September 01, 2010

If the ship goes down we all go with it. theres no sense in worrying about it now. "Hey buddy have you got a dime"

Harry of GA 4:25PM August 26, 2010

I worked for a large insurance company for 35 years and I have to tell you that I am nervous about my defined benefit plan. Retires do spend money if they have it. The failed pensions will take millions of dollars out of the economy and many retirees will have to ask the government for help in meeting their expenses. We are on a slippery slope and I am waiting to fall over the edge with out a safety net.

Mik Vrieze of IA 10:49AM August 26, 2010

In the case of the Delphi pensions, the PBGC released more than $3 billion in claims that it held on Delphi's foreign assets in order to expedite GM's exit from bankruptcy. This was undoubtedly done at the direction of the auto task force and was not in the best interest of the Delphi retirees. Independent accountants have shown that the Delphi salaried retiree pension plan was 15% underfunded when abandoned while the average of the 100 largest pension funds in the country were 18% underfunded. The takeover of the pension by the PBGC was unnecessary and politically motivated.

Jeff Gloudemans of IN 8:34AM August 24, 2010