Posted: 3/27/2008 11:29:52 AM EDT
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WTF is this crap ? more .gov involvement in shit they shouldn't be.. is SS failing? here we go again.. (I just learned a bit about it today at a 401k meeting) |
| FWIW- I do not know what your saying but I know theres a PBGC.........Pension Benifit Guarentee Corp. A private /Qusai .gov/ insurance company. If your private pension is insured by them you get a %, about 50-60% of your origional pension from this insurance. JFWIW....Good Luck! |
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still trying to get a dumb person's perspective (Cliff notes).. what I recall being told by the company investment planner was that this was a mandatory participation and you had to "opt" out. Also something about this was required because too many people are underprepared for retirement. wtf? what our "mandatory" ssn contributions???? |
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I did a little reading on it. It appears to be an insurance program for companies that offer a private pension. "Every American Has An Interest In Fixing The Pension System. The Federal government has created an insurance system for businesses offering private pensions, and the insurance is funded by premiums collected from these employers. When some businesses fail to fund their pension plans and are unable to meet obligations to their employees, it puts a strain on the entire pension system. If there is not enough money in the system to cover all the extra costs, American taxpayers could be called on to make up the shortfall. The Pension Protection Act Strengthens The Federal Pension Insurance System. The legislation: Requires companies that under-fund their pension plans to pay additional premiums; Extends a requirement that companies that terminate their pensions provide extra funding for the pension insurance system; Requires that companies measure the obligations of their pension plans more accurately; Closes loopholes that allow under-funded plans to skip pension payments; Raises caps on the amount that employers can put into their pension plans, so they can add more money during good times and build a cushion that can keep their pensions solvent in lean times; Prevents companies with under-funded pension plans from digging the hole deeper by promising extra benefits to their workers without paying for those promises up front. " |