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Scholastic Corporation Message Board

mrf1212 2 posts  |  Last Activity: Jan 1, 2015 6:45 PM Member since: Jan 7, 2009
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    Pension fund failure?

    by mrf1212 Jan 1, 2015 11:47 AM
    mrf1212 mrf1212 Jan 1, 2015 6:45 PM Flag

    UTC sent a pension offering to former employees offering a choice of not only the standing pension at appropriate retirement age but also an early pension start or lump sum pay-out. The paperwork provided payments modelled with a 1 Dec 2014 initiation date and a 22 Dec 2014 extended deadline date. During initial conversations the plan was to initiate once the paperwork was received. During the month of December 2014, an additional phone conversations revealed UTC was receiving a large response and the payments would likely be withheld until the last week of 2014 but before 2015. On 31 December an additional follow-up phone conversation disclosed there was a very large response and not only would some accounts would not be completed before the end of 2014--the new goal was to have the transactions completed by February 2015 AND the were simply using the 1 DECEMBER 2014 value as a payout rather than the model. The inability for the UTC Pension fund to meet the arrangement it offered to its participants as well as where the ONE-to-THREE months of pension assets that are being re-directed AWAY from the members are both issues that are likely simple greed or inefficiency...HOWEVER if a person withholds paying a bill in a timely manner to use a resource for another purpose it is viewed as a failure to pay an obligation and often after 60-90 days delinquent it may even be viewed as defaulting the obligation.

  • I'm sure its just a "bump in the road" based on a few greedy people trying to maximize profits and missed the deadline but the failure of the UTC pension plan to meet its promised obligations in their recent "buy-out offering" to former employees as well as choosing to use a model based on assets as of 1 DEC 2014 rather than actual numbers AND recently conceding that some members might not receive payment until February resulted in IMMEDIATE interest for an investigation.

    Sentiment: Hold

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