https://www.gurufocus.com/news/8564834/ford-motor-company-f-reports-expected-remeasurement-losses-in-pension-and-opeb-plans
10 replies (most recent on top)
Pe--sions are fine and perfectly safe, don't worry about it, the company is in good hands.
Sadly, the last best opportunity to take the pension was December 2022. So I understand why some are electing to take the stream of payments. I don't have a good estimate of how much lower it is from 2022, but I'm guessing 35-40%. The stream of payments are not guaranteed at the full amount, however the Pension Benefit Guaranty Corp. could kick-in to provide a monthly benefit. You can find the tables on their website.
I tried to warn people about this a few years ago on this site and got shouted down. "Retirement fund is fully funded!"
I laughed, said that that could change overnight. You all are like ostriches with your head in the sand. If you think salaried retirements are guaranteed you are nuts. Any salaries employee that retires and doesn't take the lump sum is a --------- ------.
RTO drove a lot of people out last year. Possibly a bit too late to be showing in the numbers, but maybe not.
Was forced to take the annuity last year due to the horrible lump sum amount that was offered in my separation package. The math for the jumpsuit verses the annuity did not work. Even my wealth advisor was shocked at the low amount.
@ed Ford froze the pension plan to new entrants in January 1, 2004. Ford closed the Supplemental Executive Retirement Plan to new entrants on March 14, 2024. Essentially, LL4 and above got another 20 years. It must be nice...
https://contracts.justia.com/companies/ford-539/contract/1274674/
When did Ford end the pension program for salaried employees, 2005?
If so, there can't be too many salaried employees affected by this news.
I thought I heard the executive pension plans were also being phased out but I'm not sure when.
To my knowledge, Ford has always been able to fund the pensions.
I think they are
Anybody who has a potential pension is nuts for not taking the lump sum. If things get hard and Ford has to do bankruptcy you can kiss all of that goodbye like those at GM did. All of this AI job displacement is going to make people stop paying their car payments and people will spend far less on vehicles. Unfortunately our economy has peaked and now it’s downhill as AI erodes jobs and job income and robots are on the horizon for massive deployment.
This does make sense to some extent, but it was hardly unexpected unless you were exceptionally slow. However, it serves as a great distraction from the actual problems!
Blame the people who earn the pension and not the boneheads blew 30 billion on yet another failure.