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rfranklin

(13,200 posts)

14. The amount required is far beyond what is actuarily required, even by the most stringent

Mon Feb 27, 2012, 06:36 PM

Feb 2012

standards. The point of that prefunding requirement was to destroy the Post Office as a unionized entity.

And do you really think that the huge pool of money will not be siphoned off by Wall Street crooks and Republicans?

Postal Service’s Overfunding of Pension Plans Grows to $13 Billion
By Kate Muth
The Postal Service is overfunding its two pension plans by more than $13 billion, according to the latest projections by the Office of Personnel Management (OPM). This overfunding comes at a significant cost to the organization as it has racked up debt to pay for prefunding of its healthcare plan, while continuing to make large annual payments into overfunded pension plans.

http://mailingsystemstechnology.com/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=8F3A7027421841978F18BE895F87F791&tier=4&id=5477ADB5C767426CB6C11549AECFC876

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Kodak moves to end health coverage for retirees 65 and older [View all] Earth_First Feb 2012 OP

Why should they pay for healthcare that the employees can access through cbayer Feb 2012 #1

Define "they" in your sentence please. Thanks.nt FLyellowdog Feb 2012 #3

Kodak. cbayer Feb 2012 #6

It usually converts into Medigap once the retiree moves onto Medicare Yo_Mama Feb 2012 #23

Thank you for that. I found this to be misleading. If it's about medigap policies, cbayer Feb 2012 #25

Some employees can be Medicare eligible but with younger, non-working spouses who would go uncovered cyberpj Feb 2012 #38

because the employees bargained for it and signed a contract.... mike_c Feb 2012 #7

But they are all Medicare eligible. Why would this even be a bargaining chip? cbayer Feb 2012 #8

Kodak had the right to NOT make the promise... mike_c Feb 2012 #12

I see your points. I thought there were pretty strict laws about the funding cbayer Feb 2012 #15

as I suspected, Kodak began robbing their retirees in the form of underfunding pension plans... mike_c Feb 2012 #19

This is true for most negotiated retirement medical plans Yo_Mama Feb 2012 #24

Yes, Kodak made a deal Roy Rolling Feb 2012 #26

You are aware that the Federal government did essentially the same thing ProgressiveProfessor Feb 2012 #36

+++++ Betsy Ross Feb 2012 #29

If these are binding contracts, then why do employees always lose their pensions? Canuckistanian Feb 2012 #46

Kodak is in bankruptcy-- their retirees just became another class of creditors... mike_c Feb 2012 #53

I agree. Are they going to cash them out for the value of the insurance. No, of course not. IndyJones Mar 2012 #56

We Have a Winner! we can do it Mar 2012 #64

Is (was) Kodak paying for FULL insurance as part of the retirement pkg. or was it supplemental? Hassin Bin Sober Feb 2012 #21

Good question. If it's about the supplemental, then that's a whole different story. cbayer Feb 2012 #22

They should have been required to pre-fund their pension fund 75 years ahead csziggy Feb 2012 #2

Not quite dipsydoodle Feb 2012 #9

Well said! Marthe48 Feb 2012 #20

dammit-- corporations should be dismantled and sold for scrap... mike_c Feb 2012 #4

The Plutocracy speaks, The Court abides... n/t Earth_First Feb 2012 #5

This corporation is being effectively dismantled and sold for scrap. boppers Feb 2012 #17

To the retirees? dmallind Feb 2012 #45

I am all for this cstanleytech Feb 2012 #10

This is why I will never be against 401Ks. Snake Alchemist Feb 2012 #11

And people thinkg pre-funding the USPS pension funds is a BAD thing?!?!? nt Snake Alchemist Feb 2012 #13

The amount required is far beyond what is actuarily required, even by the most stringent rfranklin Feb 2012 #14

The prefunding of the USPS pension fund was applauded by the union and smartly so. Snake Alchemist Feb 2012 #16

Your source for roughly how much money USPS lost during those five months? brentspeak Feb 2012 #49

Quarterly earnings Snake Alchemist Feb 2012 #50

Reads that losses would have doubled had the prefunding been in place brentspeak Feb 2012 #54

Prefunding or not they're going to be losing money. Might as well prefund. nt Snake Alchemist Feb 2012 #55

Sure, what's an extra $5.5 billion lost a year? brentspeak Mar 2012 #57

Or end up like Kodak employees. There is a reason that pre-funding is required for pensions. nt Snake Alchemist Mar 2012 #58

Is there a reason to prefund over a 10 yr span 80% of future retiree benefits? brentspeak Mar 2012 #59

I do set aside my income to fund my retirement. Snake Alchemist Mar 2012 #60

GAO: USPS prefunding for retiree health benefits should be eliminated or restructured brentspeak Mar 2012 #61

Uh.... Snake Alchemist Mar 2012 #62

If you read that article carefully, Yo_Mama Feb 2012 #28

LIke other companies Kodak promised then reneged Marthe48 Feb 2012 #18

Most private companies were extremely careful for decades to not contract for retiree health care FarCenter Feb 2012 #27

Please note that the Federal government did much the same thing... ProgressiveProfessor Feb 2012 #37

I wonder if Kodak is also planning to end executive compensation primavera Feb 2012 #30

I would bet they get bonuses after all is done. liberal N proud Feb 2012 #32

Message deleted by the DU Administrators safgertrt Feb 2012 #31

If corporations are people The Wizard Feb 2012 #33

This message was self-deleted by its author WestSeattle2 Feb 2012 #34

It's safe to assume that all those demanding Kodak honor contracts they agreed to when they WestSeattle2 Feb 2012 #35

Giving up the home to foreclosure if you cannot or will not make payments is part of the contract.. Fumesucker Feb 2012 #48

As with any financial contract, if you cannot or will not make payments than you WestSeattle2 Mar 2012 #65

I don't understand how this works? stuffmatters Feb 2012 #39

what kinds of pay cuts are CEO's and SemperEadem Feb 2012 #40

Because of ballooning pension costs, I suspect we are going to see a lot more of this Yo_Mama Feb 2012 #41

Could this turn out to be a GOOD thing in the long run, as more workers see the need for CTyankee Feb 2012 #42

We were all always reliant on Medicare Yo_Mama Feb 2012 #43

I know very well the costs of what is left out of Medicare. CTyankee Feb 2012 #44

Eeek Yo_Mama Feb 2012 #47

OK. So far so good. Nerve damage takes a LONG time to heal, and maybe then only at a certain CTyankee Feb 2012 #52

Socialization of corporate debt. truthisfreedom Feb 2012 #51

Any contract between an individual and a corporation is a one way street flexnor Mar 2012 #63