Author Topic: WTF GE?  (Read 8403 times)

Offline David in MN

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Re: WTF GE?
« Reply #30 on: October 08, 2019, 09:30:18 AM »
It would be nice to have good news here but GE just froze 20,000 pensions. If we're past the point of dividend and pension solvency the next hammer to fall might well be operating capital.

I don't even have the words to say to someone who loses a pension. Economics is the one place where being correct makes you feel horrible. I really feel for the little guy who just did his best making light bulbs for 40 years while the board insider traded and the former CEO partied at the White House. I've been the little guy on the factory floor doing my best. To tell that guy that his company stock is worthless and his pension is frozen... I don't want to live in that world.

The one ray of hope is that there are already rumors on the Street of a criminal investigation. This all started for me with a 2017 press report that I would say was indicative of the board failing its fiduciary responsibility. If I was on that board I would be hiring a lawyer. I can't even convey what I think of Immelt. May he sleep in the bed he made and be forever haunted by the thousands of employees made destitute while he got bonuses.

Offline iam4liberty

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Re: WTF GE?
« Reply #31 on: October 08, 2019, 10:22:42 AM »
I don't even have the words to say to someone who loses a pension. Economics is the one place where being correct makes you feel horrible. I really feel for the little guy who just did his best making light bulbs for 40 years while the board insider traded and the former CEO partied at the White House. I've been the little guy on the factory floor doing my best. To tell that guy that his company stock is worthless and his pension is frozen... I don't want to live in that world.

This is why we need companies and the government to move from pensions to pay-as-you go retirement compensation model based on a more substantive type of IRA where the individual controls the account.  If they like, the companies can do retention disbursements at key employment years to capture that aspect.  But the status quo of Enterprise held pensions that encourage underfunding has got to go.

Offline NWPilgrim

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Re: WTF GE?
« Reply #32 on: October 08, 2019, 04:20:42 PM »
If retirement funds were managed like a trust fund for each person then there would never be a “funds not available” day. But with defined benefits and not much control on company responsibilities toward funding it is the magic honey pot and all defined benefit programs will eventually fail. Nobody any more  has the fortitude to handle fiduciary responsibility for long term for thousands of other people.

All defined benefit programs should be converted to either trustee managed “conservative market based” returns or individual managed 401K funds with options for stocks, bonds, mutual funds.

One of my aunts worked for Tupperware for almost 30 years. Months before her retirement they announce the defined benefit fund was empty. She survived two abusive husbands, raised two kids on her own, faced never being able to retire, got cancer and still went back to work for another 10 years going through protracted cancer care including chemo. She died worn out but left her teen/young adult kids a modest house to build their lives from.

The financial markets are not what they were 40-60 years ago. Whether retirement fund, stocks, bonds, or real estate. Any pretense of law and order are gone. Customer accounts can be robbed. CDs can be defaulted on. It is basically like Las Vegas casinos:  there are rules, house rules, which guarantee the house wins over the long term and the individual is just grist for the mill. Each person now needs to be nimble and ready for any aspect to be stolen or collapsed and have fall back plans.