Re: [Amc-list] Big Three Bailout (was Interesting article)

[adh@xxxxxxxxxxxxxxxxx (Sandwich Maker)]

" From: Frank Swygert <farna@xxxxxxx>
" 
" It's a good article.  Those retirees aren't as much of a problem
" as the author thinks though.  Retirement funds are paid by the
" company for the workers they have now also, and those funds are
" supposed to be put in a different account which draws interest.  I
" don't know exactly how the big three are accounting for
" retirement funding, but we all know invested money hasn't been
" making much lately.  The retirement funds work kind of like social
" security is supposed to -- the take in should be more than is
" drawn out.  The only reason SS is in trouble is that congress has
" borrowed from the SS funds several times since the 60s and never
" paid the funds back.  How well the scheme works for the big three
" IS impacted by the number of retirees, so they do have a bit of
" disadvantage, but if the funds have been managed well that
" shouldn't be as much a problem as we are being led to believe.  I
" believe negotiations with the unions a year or two ago put
" management of those funds in union hands, so GM doesn't have that
" much liability for past retirees any more, just the cost share
" they have to put into the fund.

but it's common for corporations to dip into the retirement funds,
just like congress did with ss.  they apparently just can't resist
that big pot just sitting there, 'doing nothing'...  when i was at
at&t one of the internal newsletters proudly proclaimed that they
were the only fortune-500 company to have never touched employee
retirement money.

i'll bet that if the big 3 had also never touched their employee
retirement funds, those pensions would be fully paid for and they
wouldn't now have to tack anything onto the price of their cars.
________________________________________________________________________
Andrew Hay                                  the genius nature
internet rambler                            is to see what all have seen
adh@xxxxxxxxxxxxxxxxx                       and think what none thought
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