Is the Michigan thing the death knell of the American labor movement?

[FarCenter]

42. They can be transfered to the Pension Benefit Guarantee Corporation

It is funded from contributions by employers with pension plans covered by PBGC.

However, defined benefit pension plans are normally structured so that the benefit earned for early years of service is relatively small and the benefit from more years of service are higher. Furthermore, the benefits are based on average compensation during some later years worked. Thus, they are structured to reward long service and longevity with the employer.

Therefore, if a company goes out of business while an employee is in mid-career, they generally are screwed. Same if the employer does a conversion from defined benefit to defined contribution, with a cash transfer to the defined contribution plan or a buyout.

Pension plans associated with a union pension plan and not an employer are possibly better, although I'm not so familiar with them, and I'm not sure whether they are backed up by insurance if they are underfunded.