If GE were to go bankrupt in 2 years, what would happen to our pensions?
10 replies (most recent on top)
"honor the pension obligations or not"
That's so stupid it's funny.
Your best bet is to file a lawsuit against Welch and Imelt combined they got $617 million to walk away from GE. There is your pension right there. No corporate slug is worth that much on top of their ridiculous salaries and stock options and bonuses over the years. Meanwhile your out a pension, and keep getting short changed.
Bankruptcy will initiate the PBGC to step in and cover the pensions up to a certain amount per year per employee. Another option the company has is to sell off its units and then the buying businesses can either honor the pension obligations or not. It is all negotiated during the sale. Nothing is guaranteed except that the top executives will always make out great either way and the rest will be screwed.
Theoretically, the PBGC will back up payments owed to a pensioner's up to an amount. But if GE goes belly up, the PBGC would unlikely be able to cover all the pension owed, and it would require the gov't to step in an cover.
FYI, GE sold the appliance business to Chinese company Haier in June 2016. Under the agreement Haier may use the GE logo on the appliances until 2056. I suspect by then none of the original GE-made appliances will still be working!
I love my GE appliances. Never had a problem in 10byears.
Our Pension fund would be taken over by the PBGC. Our jobs could be gone, or we would have to accept reduced wages and benefits to keep the company afloat. We are selling everything but the kitchen sink to keep from going under. Aviation might be the only thing left when it's all said and done.
If GE didn't build $hitty appliances that are complete garbage, they would have more money!!!
the pension guarantee board would step in at some point. read up on it
You lose it