We dont have to look at AIG, it happens right in AMO. There are big problems with AMO, its the “whats good for me and my buddys” decisions made by the administration.Here are some of their public written reasons for doing away with the defined benefit plan.
In December of 2008, the DOW was at 9000 and the pension was fine. Now its at 10,000 and the pension is bust. So much for the market being an issue.
They blame the Pension Protection Act, well guess what your political action money went to these same politicians that voted for the Act. So, by all rights we funded our own downfall under the administration that hands out the PAC funds. I certainly didnt hand out the money. But thats right I dont have a buy out.
3.They blame the large number of members taking buyouts, what, they dont have records of how old and how much time people have in? They couldnt see this and make plans years ago? It smells like poor management to me. Imagine keeping records like this when the ABS or USCG show up.
So, who benefits from the death of the defined benefit? The guys with buyouts, which is almost the whole top level of the administration. Now they can collect a whole other pension, the defined contribution where because of their age and time will reap thousands and thousands from the dues paying membership.
One thing about the other pension plans around the country that have serious problems, airlines ect… they tens of thousands employees. We have about 6500 total including pension collectors. The airlines and such also allowed the companies to forgo payments to the pension plans over the years for huge salaries and such. I know that hasnt happened in AMO.
Also alot of these unions will grandfather and apply a tier syetem for people based on time in service, not change the rules on a twenty year run at 19-3/4 years which will happen to many people on 12/31/10
Hey if you have ten years or less you have some time. 10 to 19-3/4 you are paying with your working life. Think about it all these past years are gone they cant be relived.