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Originally Posted by lakedude
Ok if this is true then someone is not telling the whole truth.
Martinjlm claims that GM's funds are "fully funded" meaning they are not a burden on current employees. Lets see where is it? Here it is: But earlier someone said: You can't have it both ways, either that or Wiki is wrong.
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Both can be true at the same time. Howzat?
Pension
The number of retirees varies every year. Some retirees die. Some active employees decide to retire. This causes mild fluctuations in what is required, from an actuarial perspective, to support the pension fund.
The number of active employees varies every year. Some leave the company. Some are replaced, others are not. Some retire and move from active rolls to retirement rolls. Remember, the pension projections are to take into account "future retirees", ie active employees.
So every year the amount required to fulfill the financial or actuarial definition of "fully funded" changes. Any "deposits" to the reserves are funded from where? Profits from sales of product produced by active employees.
Support of Retirees
Support of retirees includes benefits beyond pension. The obvious and largest expense is, of course, Health Care. On an only slightly humorous note, the single largest purchaser of Viagra is the GM Retiree Prescription Plan. That useless fact is an indicator of the size of the issue. How many other prescription drugs fall into that category?
Peace,
Martin
I am NOT the official voice of GM with respect to Hybrid issues
I am NOT the official voice of GM with respect to Hybrid issues
I am NOT the official voice of GM with respect to Hybrid issues