Supervalu issued a letter to retirees stating that may be asking the government for permission to bail out of their pension plan. What does this mean for employees and retirees?
the union- labor local 1245 management pension plan IN CRITICAL STATUS, money pension benefit guaranty corp. PBGC' 100% 11$PBGC 75% NEXT 33$ MAXIMIM Guarantee's 35.75 per month x years of service.benefit eye teeth health care gone.thank you super-value for closing most of the stores that is the end results
A letter was sent from Supervalu to retirees. They stated that they had the option to claim "distressed termination" of the pension plan. Apparently if they can prove they can no longer fund it and still stay in business, they ask the government to take the plan over.
Well, I don't know if there actually was a letter or what it says but I can make the following points:
1) The plan is not SVU's, they are merely one of many employers. The employers typically have a small voice on the board of such plans but the unions are the ones who really call the shots.
2) If the multi-employer pension board is incompetent or corrupt then yea I can see them stepping in to ask the Federal government to intervene or simply stop participating. Lets face it, labor relations in the Northeast are blood sport. If there was a letter as you indicate, I'd be willing to bet large sums of money that it is one of the northeast ops.
As the benefits are modest I think most retirees would be pretty well protected by the Pension Benefit Guarantee Corp. Higher paid retirees would have to take a hit.
Can you post the entire letter? I can generally figure things out and while this is a seriously distressed plan I tend to doubt it is about to be taken over by the govt.
The letter is about 8 pages long. It states that the company is considering delaying paying into the plan for 2011 (must pay back over 15 years). The more disturbing part is the talk about distressed termination. Go to www.pbgc.gov for more information on the issue.
If they have filed with the government there is a very good chance that your pension will be cut. The goverment can reject the filing however, unless SVU files for bankrupcy. Then your pension would be in the governments care and most likely your payment reduced. Sorry
I have no idea what you are talking about. I am referring to the Supervalu non-union pension plan, has nothing to do with Acme union employees -- although that plan is probably underfunded as well. The Cub Food union plan is severely underfunded so it wouldn't surprise me.
If you are worrying about the SVU non-union pension plan not fulfilling its obligations I'd say you are in a position of life where you do not have much to worry about. The rough equivalent of getting mad at your neighbor for not keeping the dandelions out of his yard.
You aren't going to lose any pension benefits. If you are concerned about retirement, I would suggest your time would be better served advocating for sound money from the Fed. or additional social taxes to support Medicare.