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  #81  
Old 11-26-2014, 01:08 PM
Don Quijote Don Quijote is offline
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if only there was a way to convert a lump sum into lifetime income. it would be even better if there was some kind of fund guaranteeing that the company who did that deal would bd able to back it up.
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  #82  
Old 12-01-2014, 08:32 AM
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Originally Posted by campbell View Post
more
http://www.ft.com/cms/s/0/6ce546e8-7...#axzz3KZAIv3QF

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Monarch Airlines pension fund reduced to a pauper
Steve Johnson

The UK’s Pension Protection Fund is likely to take one of its largest financial hits to date from the Monarch Airlines pension fund.

The PPF, the government-mandated lifeboat for capsized corporate pension plans, agreed to accept the Monarch scheme in October as part of a deal to keep the company afloat, protecting 2,500 jobs.

Greybull Capital, a London-based turnround specialist, agreed to provide £125m of capital and liquidity facilities in exchange for a 90 per cent stake in Monarch, as long as it did not have to assume responsibility for the airline’s pension scheme.

However, John Ralfe, an independent pensions consultant, estimated the deal would cost the PPF £170m, more than a quarter of the £619m of claims it incurred on the 107 schemes it admitted in the year to March 2014.

“This size of hit would make Monarch [among the] half dozen or so largest hits” the PPF has taken since it was formed in 2005, Mr Ralfe said.
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  #83  
Old 12-01-2014, 03:07 PM
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UK

http://www.professionalpensions.com/...ditors_Updates

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The High Court has ruled the £74m Section 75 debt of the Kaupthing Pensions Scheme can be sold, paving the way for the wind up of the scheme to be completed.
Following the ruling, which lawyers say will allow other pension debts to be traded after sponsors have gone bust, the debt has been acquired by an undisclosed buyer.
The scheme, sponsored by the now-defunct Icelandic bank Kaupthing Singer & Friedlander went through Pension Protection Fund (PPF) assessment after the collapse of the firm in 2008.

Trustees had agreed a bulk annuity deal with Aviva to secure PPF-level benefits. The latest deal will not be enough provide member benefits in full but will fund additional benefits and allow the wind up to be completed by 2015.

......
McNess said the 556 scheme members would have their benefits increased in line with the amount they lost when benefits were cut to PPF levels. This means any members who breached the PPF cap will get a bigger uplift.

Pinsent Masons partner Isabel Nurse-Marsh said the ruling could help mitigate the financial blow suffered by scheme members when sponsoring employers went bust.
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  #84  
Old 12-01-2014, 04:49 PM
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who would buy sec 75 debt? do they think this gives them a stronger right than the government to pursue any remaining assets of the bankrupt co? sound like,at best, some unique circumstances in this case rather than the discovery of the fabled money tree which will make everything ok in underfunded schemes.
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  #85  
Old 12-02-2014, 06:08 PM
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AMERICAN AIRLINES
http://www.dallasnews.com/business/a...n-pensions.ece

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WASHINGTON — American Airlines, fat with record-setting profits but also confronting new demands from its pilot union, is asking members of Congress for a holiday bonus.

The airline, the world’s largest after its merger this year with US Airways, is shopping proposed language for an amendment to a 2006 law that would reduce its near-term obligations to its pension funds.

American spokesman John McDonald declined to comment about the proposed language or to indicate which lawmakers the company has approached. The company did confirm, however, it is seeking the changes outlined in a draft amendment being passed around Capitol Hill.

Those changes would amend the Pension Protection Act of 2006. Congress included special terms for the then-struggling airline industry to help prevent airlines from defaulting on billions of dollars in pension obligations.

Those pensions are guaranteed by the taxpayer-funded Pension Benefit Guaranty Corp., and lawmakers were eager to avoid a default.

But five years out from 9/11, many airlines were still struggling. Delta, for instance, had filed bankruptcy in 2005 and profits were down throughout the industry. Delta and some of its competitors had already frozen pension benefits for their workers.

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  #86  
Old 12-09-2014, 06:53 PM
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I guess this goes here. At least this isn't a "public DB for private employees" plan.

In Illinois.

http://www.chicagobusiness.com/artic...tirement-plans

Quote:
With not a vote to spare, Illinois lawmakers approved a bill that would enroll 2.5 million private-sector workers in a retirement savings program unless they opt out.

The action came yesterday evening when the state Senate voted 30-25 to ratify amendments to S.B. 2758, sponsored by Sen. Daniel Biss, D-Evanston. Exactly 30 votes were needed; two senators did not vote.

Earlier in the day, the House passed the measure by a somewhat wider 67-45 margin. Gov. Pat Quinn is expected to sign the Biss bill into law.

No American state now has anything quite like the program, which would apply to employees of firms with at least 25 workers who do not have access to an employer-provided retirement account. That may explain some of the opposition, especially from the insurance industry and Springfield Republicans, who say the measure was rushed through and should have been left for Gov.-elect Bruce Rauner to consider.

....
Under the measure, qualifying employees will be asked now or when they are hired whether they want to contribute 3 percent of their salary to a retirement account. Unless they say no, the money will be deducted from their check, just like taxes, and go into an individual Roth Individual Retirement Account that will be tax-free after retirement.

Operating much like the state's Bright Start college savings program, a panel including the state treasurer, budget chief and several outside directors named by the governor will hire a private firm that will run the program and offer various investment options. The program, called Secure Choice, will be portable, carrying over to a new employer if a worker changes jobs. Employees can contribute more or less than 3 percent of their salary if they choose.

.....
Fees will be limited to a maximum of 75 basis points, or 0.75 percent, of the value of an individual's savings account. The bill takes effect June 1, with a two-year setup period, so no savings accounts will be established until June 2017.

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  #87  
Old 12-18-2014, 10:51 AM
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http://www.lifehealthpro.com/2014/12...ise-of-private

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Buried in the $1.1 trillion spending bill ... is a provision that would allow ... multiemployer pensions to be cut for the first time.
Haven't heard much about this.

Quote:
... potentially affecting as many as 1.5 million current and future retirees ... Many commentators will blame unions for extorting extravagant, unsustainable retirement packages ...U.S. private pensions is equally a story of how business sought to manage labor, conserve profits and block the expansion of a modern welfare state.
Article goes into the history of private pensions.

Quote:
The changes in the spending bill ... are framed as a necessary measure to preserve the solvency of the PBGC. But on a deeper level, this step is a harbinger of the ultimate demise of a private pension system that has outlived its usefulness to the business community.
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  #88  
Old 12-19-2014, 11:21 AM
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Originally Posted by echo View Post
http://www.lifehealthpro.com/2014/12...ise-of-private



Haven't heard much about this.



Article goes into the history of private pensions.
You haven't heard much about this?

You might want to check this thread:
http://www.actuarialoutpost.com/actu...d.php?t=258550
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  #89  
Old 01-01-2015, 01:38 PM
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HILTON

http://www.bizjournals.com/washingto...tions-for.html

Quote:
Hilton Worldwide Inc. is suing Caesars Entertainment Corp., alleging the gaming company owes at least $17.7 million to a pension fund for former Hilton employees.
The lawsuit involves a pension deal created when Hilton spun off its gaming assets in 1998, forming Park Place Entertainment.
Park Place, renamed Caesars Entertainment Group in 2011, agreed to contribute to the Hilton retirement plan for the employees transferred to the new entity and retired employees, according to Hilton's suit, which was filed Dec. 24 in the U.S. District Court for the Eastern District of Virginia.
Hilton, which administers the fund, says Caesars' proportional share of contributions to the fund are roughly 31 percent. The McLean hotel giant's lawsuit says Caesars has declined its repeated requests to pay its share.
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  #90  
Old 01-01-2015, 05:17 PM
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TESCO

http://www.theguardian.com/business/...-pensions-hole

Quote:
Tesco, the embattled supermarket chain that lived through a nightmare two years, is facing additional financial pressure in 2015 when it must publish plans to plug a £3bn hole in its multibillion-pound pension scheme.

The company is confronting the prospect of injecting an extra £300m into its employees’ retirement fund every year for the next 10 years, according to independent pensions consultant John Ralfe. Meeting this heavy commitment is yet another challenge for newly appointed chief executive Dave Lewis, who is tasked with returning the UK’s leading grocery business to its former glories.

Ralfe, a former head of corporate finance at the chemist chain Boots who made his name handling its £2.3bn pension fund, said: “2014 saw Tesco firing its chief executive [Philip Clarke in July], disclosing accounting irregularities [which are being investigated by the Serious Fraud Office], mothballing newly completed stores, and facing a challenge to its whole business model from the discounters, such as Aldi and Lidl. Increased cash contributions to plug its pension fund is yet another problem.

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