La Li Lu Le Lo
Veteran
- May 29, 2010
- 7,376
- 2,666
The "Good" News just keeps pouring in.
- Thread starter jimntx
- Start date
La Li Lu Le Lo
Veteran
- May 29, 2010
- 7,376
- 2,666
https://www.pbgc.gov/about-pbgc/who...ension-insurance-programs-single-employer-and
I assume it is OK for me to copy and paste this article in it's entirety since it is a public domain government website. If not and it violates copyright feel free to delete this post.
PBGC runs two pension insurance programs: single-employer and multiemployer. While each program is designed to protect pension benefits when plans fail, they differ significantly in the level of benefits guaranteed, the insurable event that triggers the guarantee, and premiums paid by insured plans. The two programs are financially separate. Assets of one program may not be used to pay obligations of the other. Here's a deeper look into both programs.
The single-employer program covers pension plans that are sponsored by one employer. The insurable event triggering PBGC's obligation to provide guaranteed benefits is termination of an underfunded plan. This typically happens when the employer sponsoring the plan goes out of business or bankrupt, and can no longer afford to keep the plan going. When this happens, PBGC takes over the plan's assets, administration and payment of plan benefits (up to the legal limit). [more]
The single-employer program covers about 30 million people in more than 22,000 ongoing plans. While the single-employer insurance program has a considerable deficit ($24 billion as of Sept. 30, 2015), the program has significant assets ($86 billion) to pay its obligations ($110 billion) for many years.
The multiemployer program covers pension plans created and funded through collective bargaining agreements between a group of employers, usually in related industries, and a union. Multiemployer plans provide pension portability, allowing participants to accumulate benefits earned for service with different employers throughout their careers. Multiemployer plans are common in the construction, transportation, retail food, manufacturing and services industries. The insurable event triggering PBGC's obligation to provide guaranteed benefits is plan insolvency (when a plan runs out of money). When that occurs, PBGC doesn't take over operations of the plan; rather, we provide financial assistance so the plan can pay benefits up to the legal limit for multiemployer plans, which is much lower than for single-employer plans.
The multiemployer program covers 10 million workers and retirees in about 1,400 ongoing plans. The multiemployer program has a severe deficit. As of Sept. 30, 2015, assets totaled about $2 billion and obligations totaled $54 billion. It's likely that the multiemployer insurance program will run out of money by 2025 without action by Congress.
The maximum benefit guarantees that PBGC can legally pay when a plan fails are very different in the two programs. In the multiemployer program, the guarantees are much lower. For instance, PBGC's guarantee for a 65-year-old in a failed single-employer plan can be up to $60,136 annually, while a participant with 30 years of service in a failed multiemployer plan caps out at $12,870 per year. The multiemployer program guarantee for a participant with only 10 years of service caps out at $4,290 per year.
I assume it is OK for me to copy and paste this article in it's entirety since it is a public domain government website. If not and it violates copyright feel free to delete this post.
PBGC runs two pension insurance programs: single-employer and multiemployer. While each program is designed to protect pension benefits when plans fail, they differ significantly in the level of benefits guaranteed, the insurable event that triggers the guarantee, and premiums paid by insured plans. The two programs are financially separate. Assets of one program may not be used to pay obligations of the other. Here's a deeper look into both programs.
The single-employer program covers pension plans that are sponsored by one employer. The insurable event triggering PBGC's obligation to provide guaranteed benefits is termination of an underfunded plan. This typically happens when the employer sponsoring the plan goes out of business or bankrupt, and can no longer afford to keep the plan going. When this happens, PBGC takes over the plan's assets, administration and payment of plan benefits (up to the legal limit). [more]
The single-employer program covers about 30 million people in more than 22,000 ongoing plans. While the single-employer insurance program has a considerable deficit ($24 billion as of Sept. 30, 2015), the program has significant assets ($86 billion) to pay its obligations ($110 billion) for many years.
The multiemployer program covers pension plans created and funded through collective bargaining agreements between a group of employers, usually in related industries, and a union. Multiemployer plans provide pension portability, allowing participants to accumulate benefits earned for service with different employers throughout their careers. Multiemployer plans are common in the construction, transportation, retail food, manufacturing and services industries. The insurable event triggering PBGC's obligation to provide guaranteed benefits is plan insolvency (when a plan runs out of money). When that occurs, PBGC doesn't take over operations of the plan; rather, we provide financial assistance so the plan can pay benefits up to the legal limit for multiemployer plans, which is much lower than for single-employer plans.
The multiemployer program covers 10 million workers and retirees in about 1,400 ongoing plans. The multiemployer program has a severe deficit. As of Sept. 30, 2015, assets totaled about $2 billion and obligations totaled $54 billion. It's likely that the multiemployer insurance program will run out of money by 2025 without action by Congress.
The maximum benefit guarantees that PBGC can legally pay when a plan fails are very different in the two programs. In the multiemployer program, the guarantees are much lower. For instance, PBGC's guarantee for a 65-year-old in a failed single-employer plan can be up to $60,136 annually, while a participant with 30 years of service in a failed multiemployer plan caps out at $12,870 per year. The multiemployer program guarantee for a participant with only 10 years of service caps out at $4,290 per year.
Whatever dude. Believe what you want to believe and what these industrial unions will keep leading you to believe.
I have seen it happen, lived it to happen and you morons that just keep believing what you are told from these union controlled pensions deserved what you get. Just like the AA mechanics have to deal with what they have now as they too never pulled that trigger...
I’m curious to see how well AA handles this upcoming recession, and I’m sure the association AA negotiating will be put on hold.
If my nominal income is $100,000 and I am in the AA frozen plan and AA files for bankruptcy again, and the PBGC takes over that pension, am I going to receive the PBGC maximum of $67,295?
1AA
Veteran
You get tips when you provide a good service to your customers. AmericaWest is not capable of providing good service. It's not in their DNA.
JREwing
Advanced
- Feb 11, 2014
- 131
- 15
Maybe a good idea in theory, but then you wouldn't be able to tell a flight attendant from a passenger, as they'd both be wearing raggedy sweatpants and fuzzy slippers.
PBGC increases maximum monthly benefitguarantee for 2019. The Pension Benefit Guaranty Corporation (PBGC) has announced that the maximum monthly insurance benefit for participants in underfunded pension plans terminating in 2019 is $5,607.95 per month or $67,295 per year for those who retire at age 65.
What have you witnessed?
No one is talking about multi employer plans, we are talking about a single employer plan.
And if a multi employer plan seeks to reduce payouts they still have to get an agreement with the Department of Treasury.
No airline employee except pilots have had their pension terminated and reduced. You provide no facts nor examples and I have provided the law. You just can’t handle being proven wrong.
Date Published:
Friday, September 20, 2019
Source/Author:
Pension Rights Center
The Multiemployer Pension Reform Act of 2014 (MPRA) gives the trustees of certain underfunded multiemployer plans that meet the definition of being in “critical and declining” status almost unprecedented authority to cut retiree pension benefits. The law requires, however, that before an eligible plan cuts benefits, it must first file an application with the U.S. Department of the Treasury, which has been given authority to implement the law. The Treasury Department has 225 days to review each plan’s application to determine if the plan has met the conditions set by MPRA necessary to cut benefits.
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Your pension is never $100,000.
You will receive the dollar amount for years accrued in the plan. Which won’t be near the $67,295.
You plan isn’t frozen, it’s terminated. And you can’t collect while still working for the airline. But I do think once you hit 65 you can, unless that was changed.
- Thread Starter
- #58
There's not much point in going around and around debating how much each employee will/won't/might/might not get from the frozen pension plan and/or the PBGC You will get whatever the given plan says you will get which (more than likely) won't be determined until you retire and file for the benefit. It's almost guaranteed to be less/more than you thought it would be--changes in the law, etc.. It's why no one should ever fail to save money in addition to "the plans" No Social Security or pension plan was ever designed to be your sole source of retirement income. If you don't have retirement savings as well as "the plans" and your home is not fully paid for, then you need to plan to work at least part-time in retirement. Part of your Social Security benefit is taxable and if you don't have something taken out of your monthly check to pay that tax, you might get surprised by a much larger tax bill at the end of the year.
There's also a thing called the Income Related Monthly Adjustment Amount (IRMAA) that is a surprise that I didn't know about in advance. The Social Security Administration looks back 2 years from the current year to test your income during that year according to IRS records.
The income that counts is the adjusted gross income you reported plus other forms of tax-exempt income. If your adjusted gross income is more than $85,000 (single) or $170,000 (couple) your Part B premium goes up. The income "tiers" go up to $500,000 or more and the Part B premium for each tier goes up accordingly. I sold a condo I owned in Dallas for a nice profit during what became my test year. It pushed my adjusted gross income up substantially and my IRMAA went up to over $350/month. Fortunately, my Part B premium should drop back to around $135/month for next year because my test year income is all retirement income. Google IRMAA for info.
There's also a thing called the Income Related Monthly Adjustment Amount (IRMAA) that is a surprise that I didn't know about in advance. The Social Security Administration looks back 2 years from the current year to test your income during that year according to IRS records.
The income that counts is the adjusted gross income you reported plus other forms of tax-exempt income. If your adjusted gross income is more than $85,000 (single) or $170,000 (couple) your Part B premium goes up. The income "tiers" go up to $500,000 or more and the Part B premium for each tier goes up accordingly. I sold a condo I owned in Dallas for a nice profit during what became my test year. It pushed my adjusted gross income up substantially and my IRMAA went up to over $350/month. Fortunately, my Part B premium should drop back to around $135/month for next year because my test year income is all retirement income. Google IRMAA for info.
I too recently learned about the 2 year income look back that the medicade premium is based on.
