Comments on: Nortel’s Pension Fiasco

By: less

less — Fri, 23 Oct 2009 23:32:29 +0000

By: less

less — Fri, 23 Oct 2009 19:32:29 +0000

(Some dude named) Layton speaks out:

http://www.theglobeandmail.com/news/politics/nd...

Mr. Layton called for the Conservative government to double the Canada Pension Plan benefit to $1817 a month from $908, which several seniors' groups have been lobbying for in recent years.

The proposals come one day after retired employees of the bankrupt telecom giant Nortel held a demonstration on Parliament Hill.

NORTEL is mentioned; Canada's recognized global leader in bankruptcy.

Employees are currently last in line as Nortel sells its assets.

They are calling for the government to intervene and reform the Bankruptcy Act, allowing them to become secured creditors. That would make them eligible for payment ahead of others who are owed money.

The federal government has so far rejected the plea, saying that Nortel's pension plan is provincially-regulated and it's up to the Ontario government to take action.

Industry Minister Tony Clement pointed to Quebec, which has offered to manage the Nortel pension plan for members there until asset values rebound.

Liberal Leader Michael Ignatieff told demonstrators he supports amending the Bankruptcy Act so the pensioners can get what is owing to them.

I'd take a job here in the US demo-ing the R&D labs...

By: less

less — Fri, 23 Oct 2009 05:09:34 +0000

Funny how things work out, sometimes

I lived in Germany in the 80s when they increasingly invited the suffering from abroad to "seek asylum" there. This was, in part, a gesture of atonement to make up for WWs I, II and the Holocaust, but also to adjust for their stagnant birthrate; you can't offer free and universal healthcare and pensions to everyone if everyones retired, eh.

German thoroughness and short work weeks had them taking up to seven years to process so many asylum cases, during which seekers were granted food, clothing, healthcare, allowance and shelter but were not permitted to work.

A growing number of Germans complained about this so the neo-Nazi card was promptly and successfully brandished by various interest groups for a while longer, but it was actually the very card-brandishing green-left government itself that eventually decided and managed to change/ accelerate the asylum process.

Card-carrying watchdogs may have lost power to current rightwinger Merkel by sending sane voters home, but they've promised her and her ilk "you can have our trump cards when you pry them from our cold dead hands"

By: freqmgr

freqmgr — Thu, 22 Oct 2009 21:42:53 +0000

In the US at least Northern Trust no longer has the money. PBGC took that over. True, once in it cannot be touched….but the employer can (and will…what is the penality? —— Mike Z has to pay his grounds keeper less?) not fund them correctly.

By: johnnyd5

johnnyd5 — Thu, 22 Oct 2009 16:28:51 +0000

Money once “put in” CAN'T be used for anything else. Those funds are with a separate trust company (Northern Trust Company) and cannot be touched or used to pay for anything other than pension obligations. Where people get screwed is when the actuarial value of the liabilities exceed assets (69% funded per last word) – so new future pension payouts for NEW retirees are limited to the 69% value. Existing retirees currently drawing pension are still drawing the full value, but obviously that could change and be revised downward as no new money is going in. Markets are up 40%+ this year, so that should reduce the 69% funding status in theory.

Where there should be a law on funding is to require companies to put more money in when times and market conditions are good to manage the ebbs and flows when markets crash and companies can't afford to put in full funding.

By: gregbrown123

gregbrown123 — Thu, 22 Oct 2009 16:06:49 +0000

Mike Zafirovski's house 1291 N Green Bay Rd , Lake Forest IL

In case you want to send a Christmas card…

By: cj3499

cj3499 — Thu, 22 Oct 2009 14:51:50 +0000

I think their needs to be changes across the board with respect to pensions, and not just in Canada but for companies in general regardless of location. To begin with and this is the one thing I can not believe we still allow, companies should not be allowed to maintain underfunded pension plans. The plans should be 100% funded irrespective of anything. In addition the money, once put in should not be available for anything else regardless of the companies circumstances. And at minimum, CEO's and all executive management should be held responsible for underfunded pension plans. In particular they should be forced to fund the pension plans out of their pocket when they allow it to be underfunded and allow a company to go out of business or into bankruptcy. Until at least the last part of this is at least done companies will be able to get away with this type of thing for as long as possible. Employees will remain powerless to do anything about it.

By: jazzybest

jazzybest — Thu, 22 Oct 2009 04:51:59 +0000

Totally Agree, the problem with us figgin Canadians is we are polite and cordial. You are getting robed of 40% of your income. This is like robber
taking 25% of your security out of pocket. We don't dare step on grass at Parliament, bring balloons, throw water balls, or smoke pot. we don't disrupt anything, we stand there smiling with signs all polite and cordial and shaking hands. This is not a friggin social function but a CRISIS. Do not smile when pictures are taken of you with sign – it is not a happy occasion losing 40% of your pay and who knows what benefits. We are in a crisis and treat it as such. Do you see any movement from Harper ? – why do you think not? Did you see how fast Haper moved on GM bail-out ? Guess why?

GM union does not take crap.

By: pickaxe2

pickaxe2 — Wed, 21 Oct 2009 21:38:03 +0000

Re: -They are getting the absolute worst end of the stick, while the Euros, Americans and Quebecers take care of their own.

…..what would you expect?! We dont hear many Canadians standing up in the Euro Parliament. The fact is the Canadians are not alone in this matter, the impact also affects other regions & as one…please have a little savvy. Its the http://www….not the Canadian net

By: zeroman

zeroman — Wed, 21 Oct 2009 21:04:54 +0000

America have their own problems with illegals from Mexico, Cuba.

Tough laws are needed. Would agree the systems are two tier by penalizing qualified, educated people who do not appear in front of immigration in rag tags with no identity background or history.