Bullshit! They are responsible for the funds in the EMPLOYEES'
pension plan too. Look up ERISA. This is *very* serious business,
given the dollars in there.
http://online.wsj.com/article_email/SB115103062578188438-lMyQjAxMDE2NTIxODAyMzgwWj.html
From a pretty reliable source, the Wall St. Journal:
PAGE ONE
Hidden Burden
As Workers' Pensions Wither,
Those for Executives Flourish
Companies Run Up Big IOUs,
Mostly Obscured, to Grant
Bosses a Lucrative Benefit
The Billion-Dollar Liability
By ELLEN E. SCHULTZ and THEO FRANCIS
June 23, 2006; Page A1
To help explain its deep slump, General Motors Corp. often cites "legacy
costs," including pensions for its giant U.S. work force. In its latest
annual report, GM wrote: "Our extensive pension and [post-employment]
obligations to retirees are a competitive disadvantage for us." Early
this year, GM announced it was ending pensions for 42,000 workers.
But there's a twist to the auto maker's pension situation: The pension
plans for its rank-and-file U.S. workers are overstuffed with cash,
containing about $9 billion more than is needed to meet their
obligations for years to come.
[pension]
Another of GM's pension programs, however, saddles the company with a
liability of $1.4 billion. These pensions are for its executives....
krw, you might want to consider how companies are using bankruptcy to
bail on their pension obligations: several airlines have done this:
Pension Guaranty Corp.'s Financial Troubles Deepen
by Frank Langfitt
Morning Edition, May 18, 2005 · The government corporation that insures
pensions for 35 million Americans is facing a serious financial
shortfall of $23 billion. The deficit increased when United Airlines was
allowed to transfer its pension obligations to the government. Now
there's concern that taxpayers could face a costly bailout if other
companies follow United's lead.
Pretty current: from today's
http://www.freenewmexican.com/news/45880.html
http://www.philly.com/mld/inquirer/business/14947803.htm
Currently, pension plans are underfunded by an estimated total of $450
billion. The Pension Benefit Guaranty Corp. - the federal agency that
insures private pension plans, much like the Federal Deposit Insurance
Corp. insures bank accounts - estimates that $100 billion of that is
with firms with serious funding problems.
The pension insurer, which is self-funded from premiums, is itself
burdened by a $22.8 billion deficit because it has had to take over the
benefits obligations of companies that have gone bankrupt and ended
their plans.
Without a fix, many fear the whole defined-benefit pension system could
implode in a repeat of the late 1980s savings-and-loan crisis that
required a $130 billion taxpayer bailout.
Lack of political guts could ruin retirement
Sunday, July 02, 2006
We've known for decades that the financial day of reckoning was approaching.
And still we haven't done a thing about it.
As any demographer can tell you, when the Baby Boom generation retires,
a sizable chunk of it will live in a world of hurt. And subsequent
generations aren't likely to be any better off.
http://www.mlive.com/news/kzgazette/index.ssf?/base/columns-2/1151836097253330.xml&coll=7
Pension Tension
Some big local employers are short on funding retirement nest eggs
By Becky Pallack
Arizona Daily Star
Tucson, Arizona | Published: 06.25.2006
At least 16 of Southern Arizona's large employers have underfunded
pension and benefit programs, leading some workers to worry they won't
get what they were promised in retirement.
http://www.azstarnet.com/allheadlines/135005
A recent Standard & Poor's study examined the status of pension plans
and other retirement benefits, including medical benefits, of companies
listed on the S&P 500. Together, the 500 companies have more than $461
billion in obligations that are not funded, the study found.
Of those 500 companies, there are 20 that employ more than 500 area
residents. Sixteen of those 20 — representing 29,000 current workers in
Southern Arizona — have a combined $28.8 billion deficit, the study says.
Raytheon Co. — the parent company of Raytheon Missile Systems, Tucson's
biggest private employer — has a $4.6 billion deficit in its pension and
retirement benefits funds, the study says, though the company says it is
making large payments to its plans.
Many corporations are making the minimum contributions to their pension
funds, resulting in underfunded programs as obligations to employees
outperform growth of assets, the study says.
"The reality for many potential retirees is that the light at the end of
their working career is not the sunshine of retirement, but the
realization that they need to be more frugal and do with less," said
Howard Silverblatt, a senior index analyst at S&P and the author of the
study.
I live in San Diego: the city's pension plan is underfunded to the tune
of about $2 billion dollars: or, about one Enron.
http://www.signonsandiego.com/news/metro/pension/20060619-9999-1n19bankrupt.html
Also, medical benefits for government retirees hasn't been funded, and,
with medical costs up and people living longer, this unfunded liability
is looking huge:
http://www.nctimes.com/articles/2006/07/02/news/top_stories/22_31_197_1_06.txt
By the way, the Social Secuirty system and Medicare are not looking too
healthy, either:
http://money.cnn.com/2006/05/01/retirement/SStrustees_2006report/index.htm
Medicare, meanwhile, is expected to pay out more in benefits than it
receives in tax revenue starting this year.
No, KRW, they are not. Even the US military is having some issues:
retirement is funded out of current accounts.
http://www.cdi.org/program/document...eLastUpdated&ProgramID=37&from_page=index.cfm
And, as for private health insurance: this fine man is an inspiration:
http://hcrenewal.blogspot.com/2005/05/how-can-1248-million-year-ceo-make.html
Tuesday, May 10, 2005
How Can a $124.8 Million a Year CEO Make Health Care More Affordable?
An op-ed piece in the Providence Journal about huge pay packages for
corporate CEOs mentioned the breath-taking $124.8 million total
compensation of United Health Group (parent of United Healthcare) CEO
William McGuire. This figure can also be found in the Forbes Special
Report on CEO compensation. Here one can find that other managed care
CEOs got less fabulous, but still formidable compensation, e.g., Howard
Phanstiel, PacifiCare, 3.38 million; Edward Hanway, Cigna, $13.3
million; John Rowe, Aetna, $22.2 million; and Larry Glassrock,
Wellpoint, $25.0 million.
McGuire's compensation was so large as to take a measurable part of this
large company's net income (5%). Or to look at it from a stock-holder's
(and hence, an company owner's) viewpoint, had McGuire, who is an
employee, been only paid a cool million, and this money had been
distributed as a dividend, it would amount to about a $0.20 per share
dividend. (The current dividend is $0.03 per share.) (See company data
available from Forbes as well.)
To look at it from a United employee's viewpoint, had McGuire, who is an
employee, been only paid a cool million, and this money had been
distributed to employees, each of the 40,000 employees could have
received a bonus larger than $3000.
To look at it from the viewpoint of the health care system, the $124.8
million total compensation of a single United employee could pay the
salaries of 833 general internists at current typical salaries. Or the
$124.8 million could run one reasonable size community hospital for a year.
United Health Group's mission statement is "the company directs its
resources into designing products, providing services and applying
technologies that improve access to health and well-being services;
simply the health care experience; promote quality; and make health care
more affordable." (See this fact sheet.) Rather, it seems to be
directing a good chunk of its resources into salaries of top management
employees. How a $124.8 million CEO salary can be reconciled with a
mission to "make health care more affordable" is completely beyond me.
And, as for other post-retirement perks:
http://66.102.7.104/search?q=cache:...ect&hl=en&gl=us&ct=clnk&cd=1&client=firefox-a
Titanic was a nice ship, KRW--was a very nice ride, luxurious, but, some
hazards were ignored, and it didn't go well.
Glad you are enjoying the ride now.