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The pension is 70% funded, so he can only count on $59500/year actually being there. The likely scenario would be that all pensioners take the same percentage
by logfromblammo 9y ago
The pension is 70% funded, so he can only count on $59500/year actually being there. The likely scenario would be that all pensioners take the same percentage of haircut as the pension obligation is transferred to another company.
If he cashed out of GE and went into index funds, the stock portfolio would be conservatively worth another $3300 a year.
That's still $62800/year. If he owns his home, that amount can fund his retirement, until his first major medical expense.
- gvb 9y agoUS pensions are a guaranteed benefit, insured by the US government. If GE defaults on the pension, the US government says they will step in as trustee and will pay him the full $85,000/year. Ref: https://www.pbgc.gov/ https://www.pbgc.gov/
- sct202 9y agoThis isn't completely correct. The pension is insured but the maximum monthly benefit depends on a lot of factors. Zabroski is 61 and receives $7k per month, the PBGC won't pay that much unless GE's pension goes bankrupt when he is 67. https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum...
- ztoben 9y agoIn the article it says he's still paying a mortgage and his wife is disabled. So I would imagine there are quite a few medical expenses on top of that.