bad news on pensions
More proof that traditional defined-benefit pensions are on the way out...United Airlines transferred its pension plan to the PBGC.
The Pension Benefit Guaranty Corp takes over pension plans that have failed and pays benefits to retirees. United Airlines' plan was underfunded, but so is the PBGC. This means that future retirees may face cuts to their benefits. Coupled with expected cuts in Social Security benefits, this could be a ruinous combination for retirees who are expecting to have these benefits to support them.
source article.
The Pension Benefit Guaranty Corp takes over pension plans that have failed and pays benefits to retirees. United Airlines' plan was underfunded, but so is the PBGC. This means that future retirees may face cuts to their benefits. Coupled with expected cuts in Social Security benefits, this could be a ruinous combination for retirees who are expecting to have these benefits to support them.
source article.
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