Pension Question if Chrysler Goes Under

Pension Question if Chrysler Goes Under

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Since: Sep 09

Ballwin, MO

#1 Oct 11, 2009
This could apply to current retires, those that took the buyout and others as well.

Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
Michael1268

Rock Island, IL

#2 Oct 11, 2009
Ex Local 110 Electrician wrote:
This could apply to current retires, those that took the buyout and others as well.
Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
my dad said 65%
wakeup

Detroit, MI

#3 Oct 11, 2009
Michael1268 wrote:
<quoted text>my dad said 65%
welfare will take over

Since: Mar 08

Newark, DE

#4 Oct 11, 2009
our pensions are federaly protected. what every you are eligable for currently.
guess who

Girard, KS

#5 Oct 11, 2009
Ex Local 110 Electrician wrote:
This could apply to current retires, those that took the buyout and others as well.
Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
Depends on how well the pension is funded.

Since: Jul 08

Beaufort, Mo

#6 Oct 11, 2009
Ex Local 110 Electrician wrote:
This could apply to current retires, those that took the buyout and others as well.
Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
If you are over age 62 your pension is fully funded and you get 100%, If you are age 61 or younger, you are drawing from the supplimental pension fund which is federaly insured, but only for right around 30% of what you are getting now. What state you are in does not matter as this is federal insurane, not state. So, 62 or over, 100%, 61 or younger, around 30%.
jeep1

Waterford, MI

#7 Oct 11, 2009
Ex Local 110 Electrician wrote:
This could apply to current retires, those that took the buyout and others as well.
Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
hear is the link to the pension benefit guarentee corporation> somewhere on the site it breaks down the percentage you would get at whatever age you are at. it is very complex but it goes something like this the younger you are the less the percentage you would get of the amount you would have got if the company keep the pension contract intact up till your 65 then you could recieve 100%. however if the pension fund is not fully funded when the company forfiets it to the govt (pbgc) then you could end up with pennies on the dollar!! here is the link

http://www.pbgc.gov/

Since: Sep 09

Indianapolis, IN

#8 Oct 11, 2009
uaw 284 wrote:
our pensions are federaly protected. what every you are eligable for currently.
I have been told the same thing. I am laid off with 12 years credit toward retirement. Yes, I do hope the company surprises us all and turns a profit and is able to call all remaining laid off employees back. The factof the matter is, with no design engineers, Daimler fixed that for us by taking them all with them when they sold us to Cerberus, it is hard to design new vehicles. My brother-in-law told me last night that he had seen an article about the Dodge brand of cars going away and the Fiat engineers are working on how to stretch their vehicles to make them desirble to the US folks. Whether that is true or not could be debated, but it makes for a good topic.
jeep1

Waterford, MI

#9 Oct 11, 2009
uaw 284 wrote:
our pensions are federaly protected. what every you are eligable for currently.
it is decieveing!! it is not 100% gaurenteed!! look up pension benefit guarentee corporation and read how it works!! look up delphi and see how much they got!! you will not end up with 100% because the company used alot of it just like everything else and it went from a huge surplus back in early 2000s to a deficet now!! delphi got screwed like this!!

http://www.pbgc.gov/
uaw1984

United States

#10 Oct 11, 2009
Ex Local 110 Electrician wrote:
This could apply to current retires, those that took the buyout and others as well.
Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
This is what i've been talking for sooooo long. You need to pull up gov. pensions and you will see that IF your company goes under and you do not have 30 yrs. in (or 62 yrs of age)it does not promise anything!! The gov will promise 60% but it has ALOT of if's ands and but's!! I have asked this many times and noone will reply. When you take an early out and the co.goes under are you promised anything.... "I don't think so. You have to put in the time (30 yrs)to get even the 60%. Someone tell me different!! Does that not explain when Chrysler filed bankrupt that some didn't get paid that week or had it taken back??
Rte31

AOL

#11 Oct 11, 2009
If you are under 62 and have 5 years of retirement in, you should be OK on your base pension.-Not sure how safe the bridge is. I think Fiat will have to make adjustments on car models just because they can't get the parts they need. Chryler outsourced the most parts and now they are the most vulnerable. There are some critcal powertrain parts/castings that I hear need new suppliers asap. Magna, Linamar, Metaldyne, Getrag, Gredy,Continental,Visteon,Hone ywell etc. have all been wounded by Chrysler's bankruptcy.
jeep1

Waterford, MI

#12 Oct 11, 2009
also with all these companies going into bankruptcy the pbgc is running low on available funds also! companies that file ch 11 or 7 can put their pensions into the pbgc and they are all underfunded!! nothing is guarenteed!! we of all people should understand this!!
WHY

United States

#13 Oct 11, 2009
If Chrysler goes down and you are a recent retiree, you will get only the guaranteed part of your pension,if you are under 62 you will not get the bridge or SERP. If you are over 62 you will get your full retirement minus the SERP. If you are working at Chrysler when they go down you will get nothing!!
If you think they are going to fail and they offer you a early retirement, you need to think about taking this offer, 40% is better than nothing. You could have 29 years in and if they go down you will get nothing. Good Luck!!!
WHY

United States

#14 Oct 11, 2009
uaw 284 wrote:
our pensions are federaly protected. what every you are eligable for currently.
Your pensions are only protected if you have retired before Chrysler goes down. If Chrysler goes down they will not give you a pension.
WHY

United States

#15 Oct 11, 2009
Ex Local 110 Electrician wrote:
This could apply to current retires, those that took the buyout and others as well.
Does anyone know what would happen to the pensions that the retirees are currently getting and also the ones that were promised to those who took a buyout if Chrysler goes under? Will the Government cover 100%, 50% or what? I've heard 50% but in some cases they'll cover the entire 100%. Anyone know for sure?
If Chrysler goes under and if you did not retire before the company failed you will get nothing, and the people who took buyouts gave up thier pensions for the cash!!

Since: Sep 09

Chicago, IL

#16 Oct 12, 2009
WHY wrote:
<quoted text>If Chrysler goes under and if you did not retire before the company failed you will get nothing, and the people who took buyouts gave up thier pensions for the cash!!
Part of the provisions that were guaranteed to those of us who took the buyout is that we will still be getting a pension based on our years of service whenever we are old enough to begin receiving it. I'm just trying to find out how much of that the government will be paying if Chrysler is no longer around.

Lots of good feedback so far. Thanks.

charles

Saint Louis, MO

#17 Oct 12, 2009
WHY wrote:
<quoted text>If Chrysler goes under and if you did not retire before the company failed you will get nothing, and the people who took buyouts gave up thier pensions for the cash!!
This is not a true statement. You need to check the facts before posting such bullshit!!!
charles

Saint Louis, MO

#18 Oct 12, 2009
charles

Saint Louis, MO

#19 Oct 12, 2009
Q: What happens when PBGC takes over as trustee of my plan?

A: PBGC reviews your plan's records to determine the benefits each person will receive. The amount we pay is subject to limits set by law.

If you are already receiving a pension, we will continue paying you without interruption during our review. These payments, an estimate of the benefits that PBGC can pay under the insurance program, may be less than you were receiving from your plan but will be paid in the annuity form you chose at retirement.

If you have not yet retired, we will pay you an estimated benefit when you become eligible and apply to PBGC to begin payments. About four months before you are ready for your benefits to begin, contact PBGC by calling the Customer Contact Center toll-free at 1-800-400-7242.

We pay most benefits by Electronic Direct Deposit, sending your monthly payments directly to your financial institution. If you do not want to use direct deposit, you may still receive your benefit by check.
MR in hv

Shreveport, LA

#20 Oct 12, 2009
They have been paying about 65% on most of them that have gone under. Now you why they gave Chrysler and GM all that bail out money.

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