Sears struggling with their pension plan ...

[dogtag]

I talked about this problem before. How these companies
dig themselves such deep holes is beyond comprehension.
How can a company possibly afford to pay retirees an
extravagant pension until the day they die - and even then
it doesn't end when there's a wife.
The pension plan I had with my company was great -
I could put into the plan each month as much of my salary
as I wished - the company would match it. When I retired
they wrote me a check. That's it. As my wife was working
it allowed me to put in a fairly good chunk.

https://www.dailymail.co.uk/news/art...lan-blame.html

[dryheat]

The title states one of the problems. Sears is not keeping up with the times. And they can't. But being stuck with an antiquated retirement plan doesn't help. ILL. is a larger example of Sears. So far they are big enough to cruise with it. I don't think that will last forever either. But ILL. might have the where with all to figure it out. Ill. is the Big House.

[barretcreek]

My pension was overfunded until the IRS started interfering with it, now we hover around +/_ 100%. But that's a multi employer plan. Too many corporate plans invest heavily in their own stock (incentive to work harder) rather than running the plan as a real investment. Government plans tend to be used to reward big contributors with the opportunity to (mis)manage them.

[dryheat]

Don't put your faith in retirement plans. My old uncle retired from an advertising agency back in the fifties. He got screwed out of his pension. Luckily, he did OK. Back in the 80's corporations "somehow" managed to lay off all the guys that were approaching their fifties. Imagine that? It's tough out there. Here's a tip: Save. Pay with cash. Don't eat out. Pretty simple.

[barretcreek]

Don't put your faith in retirement plans. My old uncle retired from an advertising agency back in the fifties. He got screwed out of his pension. Luckily, he did OK. Back in the 80's corporations "somehow" managed to lay off all the guys that were approaching their fifties. Imagine that? It's tough out there. Here's a tip: Save. Pay with cash. Don't eat out. Pretty simple.

I'm spread out. And only living off of the plan and SS; the other stuff is in the wine cellar. Plus I audited a course on coding which I will take for credit this winter; got some ideas to develop.

[Vern Humphrey]

As I said, I put the full 15% into a 401k for about 10 years. I checked the investments carefully, and moved money whenever it seemed profitable. Today the minimum withdrawal is $3,000 a year MORE than my Social Security and my wife's Social Security. Imagine if we'd been able to invest and manage our Social Security like that!

[Roadkingtrax]

Don't put your faith in retirement plans. My old uncle retired from an advertising agency back in the fifties. He got screwed out of his pension. Luckily, he did OK. Back in the 80's corporations "somehow" managed to lay off all the guys that were approaching their fifties. Imagine that? It's tough out there. Here's a tip: Save. Pay with cash. Don't eat out. Pretty simple.

Still pretty common the "RIF" the older workers, at the expense of losing their experience. I can understand the retired in place folks, but to collectively destroy your knowledge base, is ultimately a higher expense. Innovation isnt always hampered by those with seat time.

[Clark Howard]

The prime warning sign for a pension plan in trouble is an attorney named as the CEO, or CFO. A crook will find seventeen ways to drain funds from a plan, and keep his hands clean in the process. The government will collude with that crook to turn the remains of the pension fund over to the Pension Benefit Guaranty Corporation, which will complete the assault on the pensioners. All within the law. The guilty will dash away with the proceeds. Regards, Clark