Pensions in Chapter 9 Bankruptcy.

Something we will see across this nation?

Detroit Is Ruled Eligible for Bankruptcy
http://www.nytimes.com/2013/12/04/us/de ... ef=us&_r=0

The judge made it clear that public employee pensions are not protected in a federal Chapter 9 bankruptcy — even though the Michigan Constitution expressly does protect them.

“Pension benefits are a contractual right and are not entitled to any heightened protection in a municipal bankruptcy,” he said.

The latest numbers I saw was pensions being paid 16 cents on the dollar. I expect someone, probably US taxpayers to bail out the pension plan.

Having just talked with a financial planner last week (Bellco for decades now)....I will relate what
was told to us.

ALL pensions are becoming unsustainable....corporate pensions obligations are HUGE,over 10
percent of the corp. budget,to operate in a reasonable margin of black,the corp must eke out
10percent PLUS annually.

Thus corporate america is opting to "buyout" the pension of an individual (one time lump sum)
to solidify their profits moving forward.

If you are LUCKY enough to be receiving a pension from your employer,please be aware of the
coming trend.

homeagain wrote: Having just talked with a financial planner last week (Bellco for decades now)....I will relate what
was told to us.

ALL pensions are becoming unsustainable....corporate pensions obligations are HUGE,over 10
percent of the corp. budget,to operate in a reasonable margin of black,the corp must eke out
10percent PLUS annually.

Thus corporate america is opting to "buyout" the pension of an individual (one time lump sum)
to solidify their profits moving forward.

If you are LUCKY enough to be receiving a pension from your employer,please be aware of the
coming trend.

I am confused. By pension plan I assume you mean defined benefit plan. Corporations have been phasing them out for almost as long as we have been alive. Do anyone except union and gov workers still get them?

YES, I know....my husband's was phased out a decade ago, we LOST a large percentage of what
would have been his pension.....it was THEN re-packaged as a cash plan (forgot the actually
name of vehicle.

THAT plan is now under fire.....AT&T is buying out his redefined pension plan as a "one lump sum
offer" and he is off payroll Dec.30 if he is accepted as a candidate....we will know on Dec. 17,he
"hit the button" last week......(accepted the buyout).....the "magic number" was activated
age plus seniority=75)

The bankruptcy of Detroit is Bush's fault. And the Republicans have been throwing sand in the gears for months hoping to derail a recovery. Where is the GOP plan to save Detroit?

My wife works for a state agency and they are phasing out the current defined benefit plan. We only have one more year to buy.