Retirement savings ....Yikes !

[Gale Hawkins]

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Sounds like the big guys got away and the hard working/saving types got burnt. Glad the USA laws would make this "impossible" to happen here.

You may want to read some of the comments that bring the discussion to USA potential similar issues and actions.

 

[Gator6x4]

Is this coming to your town or city?

SACRAMENTO, Calif. (AP) - The people of Stockton will feel financial fallout for years after a federal judge ruled Monday to let the city become the most populous in the nation to enter bankruptcy.

But the case is also being watched closely because it could answer the significant question of who gets paid first by financially strapped cities — retirement funds or creditors.

"I don't know whether spiked pensions can be reeled back in," U.S. Bankruptcy Judge Christopher Klein said while making the ruling. "There are very complex and difficult questions of law that I can see out there on the horizon."

The potential constitutional question in the Stockton case is whether federal bankruptcy law trumps a California law that says money owed to the state pension fund must be paid.

Stockton now owes CalPERS about $900 million to cover pension promises, far the city's largest financial obligation. Many struggling cities across California are in the same situation.

So far, Stockton has kept up with pension payments while reneging on other debts, maintaining it needs a strong pension plan to retain its pared-down workforce.

Attorneys for creditors argued that it was unfair for their clients to accept reduced payments while the pensions negotiated in flush times went untouched. They argued that employees who shared the wealth during good times should bow have to endure some of the pain with cuts to their pensions.

Read the complete article here: Judge rules Stockton, Calif., to enter bankruptcy: Associated Press Business News - MSN Money

 

[ultrarunner]

All this retirement talk and then I receive a letter today saying I forfeited $452.80 which is the non vested portion of my 401k account due to employment termination date of 12/31/1998

I have worked at the same job desk since 1991

Back in 1998, my Hospital bought out the 49% junior partner HCA which was providing our benefits package.

At that time I lost 80% of my employer match because 3 years service left me with 20% vesting... if it had happened the next year, my 3 years service would have left me 40% vested.

Anyway, I put it behind me until I opened today's mail and see 15 years later I'm loosing another $450

This is insane... and the best I can get from the company plan administrator is we will look into it... no case number, no time frame and no confirmation...

I'm sure these 401k plans must work for some... for me a total disaster and headache.

The ironic part is a took a salary reduction to get benefits and then lost all the benefits I was promised...

My employer has wished me well in getting it resolved and denies all responsibility.

The thing is if I file an ERISA complaint, my employer will be in the middle of it and I will be the trouble maker.

 

[Larry Caldwell]

The USA needs to plan for a future where there are not enough jobs of any kind for the population. If you ignore the unemployment numbers and look at how many people are actually working, only 58.6% of the population has a job of any kind, and that number has generally trended downwards for the last 30 years. The non-working population includes children, the elderly, mentally or physically unfit, criminals and the unemployed. The new jobs being created are low wage, menial service jobs. High value production jobs are being automated out of existence.

 

[David Devuono]

At least up here in Canada, it is spelled out differently. Or population is aging (baby boomers) and without sustained immigration, there will not be enough workers to fill all the jobs, in ten years.

 

[keegs]

Japan's unemployment rate is in the 4% range and Germany's in just over 5%.

They both have very large export manufacturing sectors, universal healthcare, much high energy costs and much higher marginal tax rates.

 

[riptides]

All this retirement talk and then I receive a letter today saying I forfeited $452.80 which is the non vested portion of my 401k account due to employment termination date of 12/31/1998

I have worked at the same job desk since 1991

Back in 1998, my Hospital bought out the 49% junior partner HCA which was providing our benefits package.

At that time I lost 80% of my employer match because 3 years service left me with 20% vesting... if it had happened the next year, my 3 years service would have left me 40% vested.

Anyway, I put it behind me until I opened today's mail and see 15 years later I'm loosing another $450

This is insane... and the best I can get from the company plan administrator is we will look into it... no case number, no time frame and no confirmation...

I'm sure these 401k plans must work for some... for me a total disaster and headache.

The ironic part is a took a salary reduction to get benefits and then lost all the benefits I was promised...

My employer has wished me well in getting it resolved and denies all responsibility.

The thing is if I file an ERISA complaint, my employer will be in the middle of it and I will be the trouble maker.

I have been through this BS before.

Sometimes you just have to play nasty, and do what is right. It sounds like you lost interest and time on that 450 too! Interest, somewhat a biggy, Time - not recoverable!!!

I just "retired" and closed out over 8 (eight!) "plans" from my employer. I took my lump sum pension, too. Another "plan". 9 "plans"!!!

Insert big nasty word ---- 'em.

I say of the 26 years, between Wall Street, the US Government, and MBA leadership, I could have DONE a lot better managing my OWN money. Oh, wait, I did.

I'd go for the ERISA complaint and whatever else is available.

 

[daugen]

Anyway, I put it behind me until I opened today's mail and see 15 years later I'm loosing another $450

did they tell you who was going to get your money?

didn't think so...

 

[dave1949]

Japan's unemployment rate is in the 4% range and Germany's in just over 5%.

They both have very large export manufacturing sectors, universal healthcare, much high energy costs and much higher marginal tax rates.

Yes, but they don't have the Koch Bros. screwing up their countries.

 

[300UGUY]

The Koch bros element in our country would rather see a civil war here than to emulate europe.