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View Diary: KC Star Proves Facts About Hostess Have No Place On The Opinion Page (57 comments)

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  •  What ended up happening to the pensions? (2+ / 0-)
    Recommended by:
    Odysseus, mrkvica

    Would be interested in some facts on this, I used to do labor law (not ERISA law, although I have enormous respect for ERISA lawyers) and know that there are pension protections out there contained within ERISA, but this is only a vague memory of what feels like a distant past ;p.

    Sorry, I'm sure you've written about it but I probably missed it - have a good link or anything?

    "The first drawback of anger is that it destroys your inner peace; the second is that it distorts your view of reality. If you come to understand that anger is really unhelpful, you can begin to distance yourself from anger." - The Dalai Lama

    by auron renouille on Wed May 22, 2013 at 08:39:02 PM PDT

    •  the company didnt fund its pension contributions, (3+ / 0-)
      Recommended by:
      auron renouille, a2nite, Odysseus

      So, IIRC, the employees get the pbgc max and are unsecured creditors for the difference.

      •  Thank you :). nt. (0+ / 0-)

        "The first drawback of anger is that it destroys your inner peace; the second is that it distorts your view of reality. If you come to understand that anger is really unhelpful, you can begin to distance yourself from anger." - The Dalai Lama

        by auron renouille on Thu May 23, 2013 at 06:38:05 AM PDT

        [ Parent ]

        •  His answer was inaccurate. (1+ / 0-)
          Recommended by:
          mrkvica

          We have not been told anything positive by the PBGC. Our funds were collected by the company from our checks but never sent to the pension fund. This money will NOT be paid back by the PBGC because it never made it to the pension in the first place. PBGC is meant to cover pension funds that cannot cover their obligations to members. This fund does not have obligations to us for the amounts they never received. When payments stopped being received on our behalf, our pension draws froze to a pro-rated amount based on the time our payments were received.

          For example, the company sent (most of) the check for my first 12 1/2 years on job so I will receive a pro-rated amount based on those years. The $4.25 an hr they collected from us(Lenexa,KS) over the final year plus, will never be recovered.

          They collected over $186M from our checks over the years the hedge funds were involved that never made it to the pension. That money is viewed by the pension fund as a shortage on our behalf and will simply pay us less to cover it. PBGC has no intention to help us.

      •  That is not accurate. (0+ / 0-)

        We have no expectation of the pension funds being covered by the PBGC. Please provide a link to confirmation.

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