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The Pension Cut...



October 24, 2008 – Comments (2)

I've been saying for a year that I doubt very much that people will be getting the pension they think they are getting, and here's a pension hit that never crossed my mind.

A part of GM's benefit package was that money that they put into their retirement plans was matched by GM.  That's been cut and is essentially a pay cut.

I expected to see companies that have pensions based on years of service and income, which are mostly way in the hole, making sustainable adjustments.  I didn't expect to see 401k plans hit this way...  I thought they'd be "safer"...

But then again, those massive joint plans can for a while hide cuts...  Much harder to hide something you expect to see.

2 Comments – Post Your Own

#1) On October 24, 2008 at 3:49 PM, socialconscious wrote:

That will definately increase as a trend.I have heard of mergers where the benefits reduce to the less costly between the two companies for years in the pharmaceutical biz.Specifically I have friends in Michigan and I truly feel sorry for them. They gave concession in 2005 via the UAW only to face this. Truthfully the Big 3 or ( 2 now) wants to ger rid of all their legacy expenses which include workers with 7 + years of experience. Sadly only Ford has some kind of plan that would include retraining with a buyout. GM just wants to fire workers and borrow money our tax money to merge with Chrysler. All IMHO

oh yeah out of leftfield... check out  my blog...Thanks

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#2) On October 24, 2008 at 3:49 PM, motleyanimal (36.83) wrote:

I applied for my pension early, just last week. While I am nowhere near 65 and will get 48% of what I would have received at age 65, I will take the money now, having serious doubts about the long term future of my former employer.

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