I didn't know state or municipal pensions aren't covered by the Pension Benefit Guaranty Corporation

[NNN0LHI]

http://www.suntimes.com/business/savage/13527382-452/war-on-pensions-moves-to-new-target-those-already-retired.html

War on pensions moves to new target: those already retired

TERRY SAVAGE [email protected] July 1, 2012 3:30PM

When I wrote about the coming “Public Pension Wars” a few years ago, the responses ranged from astounded to angry. The very idea that a state or municipality could change pension contribution requirements — in the middle of an employee’s career — was shocking.

Now we’re about to see the next level of state and municipal pension warfare: changes in benefits for those already retired. snip

When corporations go bankrupt, pension plans become a creditor. Just think back to the United Airlines bankruptcy filing in 2002 — or the bankruptcies of almost every major airline. Or remember other headline corporate bankruptcies, including General Motors, Chrysler, Worldcom, Texaco, and the list goes on. What happened to their employee pensions?

The Pension Benefit Guaranty Corporation guarantees corporate pensions — up to a limit. So, lower paid workers are generally made whole on the pension payments. But higher paid executives and pilots who retired took a big haircut on their monthly payout. For 2012, the maximum guaranteed amount is $4,653.41 per month ($55,840.92 per year) for workers who begin receiving payments from PBGC at age 65.

But the PBGC does not guarantee state or municipal pension plans!

[NNN0LHI]

1. Toyota who wasn't bankrupt turned their pensions over to the PBGC but we can't do that for our own?

http://carapace.weblogs.us/archives/8570

Toyota to hand off pension bill to U.S.


Detroit Free Press

http://www.freep.com/article/20100318/BUSINESS01/3180456/1002/Business/Toyota-to-hand-off-pension-bill-to-U.S.</a>

By Greg Gardner, Free Press Business Writer

March 18, 2010

Toyota is leaving a $131-million pension shortfall to the Pension Benefit Guaranty Corp. as it closes the New United Motor Manufacturing Inc. plant in Fremont, Calif., April 1, said Sergio Santos, president of UAW Local 2244….

HARLEY SHAIKEN, A UNIVERSITY OF CALIFORNIA BERKELEY PROFESSOR and labor relations expert, said the pension shortfall adds to Toyota’s public relations challenges.

"For the world’s most profitable automaker to walk away from a pension covering people who, in some cases, worked for more than a quarter of a century doesn’t look good," Shaiken said. "Especially in the wake of Toyota’s recent recalls."

[Nye Bevan]

2. Yep. Horrible loophole (nt)