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Mr. Taveras announced that retirees, current safety officials and current municipal workers agreed to a 10-year suspension of cost-of-living increases for most pensions — and limitations thereafter — and the migration of their health care plans onto Medicare.
Note: This should work for most pensions.
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In 2002, the last low point for most pension funds, America's 500 biggest companies reported an aggregate pension deficit of more than $200 billion, according to David Zion, an analyst at Credit Suisse who specializes in decoding pension numbers.
Chapter 11 is a useful card for bosses, because the PBGC does not guarantee the full amount of most pensions.
Both are not-for-profit options and, like most pensions nowadays, offer defined contributions rather than defined benefits – ie the payouts you receive on retirement are dependent on factors such as the amount you pay in, fluctuations in performance of the investment, and the economy.
For decades, most pension managers considered equity investments the most efficient way to prepare for workers' retirements, because equities have historically returned more than bonds.
But he criticized the government for postponing most pension decisions until after the coming general elections.
He said the £1tn-plus deficit figures were "a hypothetical scenario which does not reflect the reality for how most pension funds will be managed over the next few years.
Today, most pensions are 401(k) plans.
But the 21st century has been dismal for stockmarkets, where most pension money has been put.
For most public pension funds, that means about 8 percent.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com