AA pension funds how are they doing?

[chris perry]

Anyone know how pension funds fairing during downturn?

 

[The Goose]

Anyone know how pension funds fairing during downturn?

Can't speak for the pension funds, but the Super Saver "choices" aren't doing too well. Since the same group invests (they say) administers both the SS and pension money, I'd bet AMR is near having to make a rather large donation to the kitty.

Even though Wall Street got its Christmas present (taxpayer funder exec bonuses) early via the so-called bailout, the giddyness probably won't last much longer if at all.

 

[FWAAA]

I assume that the equity values have been substantially trimmed and that the bonds are probably thriving (generally, bond prices have held up as interest rates have dropped).

Whatever the calculated shortage, AMR has several years to make it up (unless Congress has again changed its mind to favor those who froze plans and thereby punish AA for keeping its plans).

 

[The Goose]

I had forgotten about the "grace" period for make-up donations.

Thanks

 

[Boomer]

I assume that the equity values have been substantially trimmed and that the bonds are probably thriving (generally, bond prices have held up as interest rates have dropped).

Whatever the calculated shortage, AMR has several years to make it up (unless Congress has again changed its mind to favor those who froze plans and thereby punish AA for keeping its plans).

Since we are prevented by law from actually knowing what AMR invested in per fund, the date they invested per fund and the amount they claimed as invested per fund: we cannot compare the "booked" return on investment versus the actual return on investment. Remember, the "smoothing" laws passed during the Clinton Administration allowed booked versus actual returns to be posted to each Defined Pension Benefit Account because there were ANTICIPATED years during which the actual ROI would exceed the booked ROI and they would smoothe the years where the inverse would happen.

Cramer has been telling anyone with a need for funds within 5 years to pull their money from the market: he is the SAME GUY THAT WAS ACCUSED OF BEING MENTALLY IMPAIRED OVER A YEAR AGO DURING AN APPEARANCE ON CNBC.
CRAMER MELTDOWN

 

[Boomer]

Current Market Conditions Assume 40% Loss In Investment Holdings

EXPLANATION OF PREVIOUS POST:

LINK PROVIDED REFERENCE: Tax AAdvantaged Payoff Accounts

LINK PROVIDED REFERENCE: US Retirement Accounts Net Worth: End Q4 07

 

[FWAAA]

No required 2009 pension contributions, regardless of their end of year value.

On the conference call today, Horton revealed that AMR is under no obligation to contribute to the pensions next year. $78 million this year, already contributed. None planned for next year.

 

[Boomer]

No required 2009 pension contributions, regardless of their end of year value.

On the conference call today, Horton revealed that AMR is under no obligation to contribute to the pensions next year. $78 million this year, already contributed. None planned for next year.

OK, I'll Bite:

The DBP plans could and should be covered to the same extent as the financial services industry as long as there is complete transparency with respect to the who, what, when, where and why for any/all investments made into and on behalf of the respective DBP Plans.

With respect to Obama proposals for a 10K tax-free withdrawl from tax-advantaged retirement accounts and the DBP redemptions, it is too Little, too TWULate:

1) The US Treasury must capture the shortfall with respect to the individual investments made on behalf of the owners;
2) The US Treasury must pay only the net-present value for redemption of shares into the system;
3) The US Treasury must be prevented from redemption of shares held until profitable to the US Treasury;
4) The US Treasury must hold funds redeeming shares on behalf of shareholders subject to Executive Compensation Limits;
5) The US Treasury must hold Executive Compensation Limits specifically for funds redeemed by DBP Plan Sponsors.
5)

 

[Boomer]

OK, I'll Bite:

The DBP plans could and should be covered to the same extent as the financial services industry as long as there is complete transparency with respect to the who, what, when, where and why for any/all investments made into and on behalf of the respective DBP Plans: repeal the Clinton era law preventing disclosure.

With respect to Obama proposals for a 10K tax-free withdrawl from tax-advantaged retirement accounts and the DBP redemptions, it is too Little, too TWULate:

1) Stated before, the measure of the problem and the extent of the problem are exponential;
2) The US Treasury must capture the shortfall with respect to the individual investments made On those affected;
2) The US Treasury must pay only the net-present value for redemption of shares into the system;
3) The US Treasury must be prevented from redemption of shares held until profitable to the US Treasury;
4) The US Treasury must hold all funds and legal entities redeeming shares, on behalf of shareholders, subject to Executive Compensation Limits;
5) The US Treasury must hold Executive Compensation Limits specifically for funds redeemed by DBP Plan Sponsors.
5)