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BILL KADEREIT
Some companies that sponsor defined benefit pension plans offer lump sum pension buyouts to pension plan participants to reduce their long-term pension plan liabilities.
Ford Motor Company announced on April 27th that it will offer about 90,000 eligible U.S. salaried retirees and former employees the option to receive a voluntary lump-sum pension payment. The General Motors Retirees Association has been informed by several GM retirees that they have been contacted by the Gallup opinion polling organization asking them if they would accept a lump sum "pension buyout" from GM, in lieu of a monthly pension benefit. GM, however, has not recently announced a lump sum pension buyout offer.
When a company offers a lump sum pension buyout, pension plan participants are faced with making a critical decision. The NRLN staff, a small group of Retiree Association leaders and I have developed "A Defined Pension Benefit Buyout Information Sheet" that is part of this message. It is designed to help NRLN Grassroots Network Members with a basic understanding of a buyout offer and the things that an individual needs to consider when making the decision on whether or not to accept the lump sum buyout. This Information Sheet is not exhaustive but provides our initial thoughts on issues retirees need to consider when evaluating a lump sum buy-out offer. It is not our intention to evaluate specific company buyout offers as they are made available. You should contact your company benefits office or retiree association leaders with questions about whether your company is offering a lump sum pension buyout.
Many of you may never be faced with making such a decision. For those who do receive a lump sum buyout offer, we think the information below will be useful to you. You may want to print a copy and save it for reference. Click here to access A Defined Pension Benefit Buyout Information Sheet.
Bill Kadereit, President
National Retiree Legislative Network
Click here to read the spring 2012 edition of the NRLN FOCUS Newsletter.
The 8-page newsletter carries an in depth report on the NRLN's 10th Annual Leadership Conference on January 30 – February 2 in Washington, D. C. where retiree association and Grassroots Network members were immersed in NRLN legislative initiatives and engaged Capitol Hill and federal agency officials in an effort to shore up retirement security.
In the "A Clarion Call" column, NRLN President Bill Kadereit writes the NRLN continues to advocate that Congress should address Social Security's long-term funding gap by a modest increase--possibly between 0.5% and 1.5%--in the payroll tax and increase the maximum taxable wage cap until the Social Security Trust is again adequately funded.
In the "A View from Washington" column, Marta Bascom, NRLN Executive Director, points out that Congress has blown the federal budget so far out of proportion in the last four decades on so many programs – including corporate bail-outs – that even those members who used to reliably stand to protect retirees are now scurrying behind the budget deficit reports looking to cut vital programs that will hurt America’s seniors.
NRLN Agency Arranged for Free Rx Savings Card
The NRLN has arranged to offer you a Health Savings Rx Card℠, at NO COST, that offers you and your family savings from over 62,000 participating pharmacies. Click the "Insurance" tab above and select "Health Savings Rx Card℠" to access the Health Savings Rx Card℠ website. Please read "How Your Card Works," click the links for "Drug Pricing" and "Pharmacy Locator"; shop, then you may elect to print a Health Savings Rx Card℠. The NRLN will not be compensated for this offering and participation is entirely up to you.
NRLN 2012 Survey Needs Your Input
The National Retiree Legislative Network (NRLN) is extending an invitation to you to participate in its 2012 online survey. Your responses will be valuable to the NRLN Board and Retiree Association leaders in planning the 2012-2013 Legislative Agenda initiatives and setting future directions and priorities for the NRLN and your Retiree Association. It will also provide the NRLN with an expanded understanding of issues regarding retirees' pensions and benefits plus retirement security. Click here to take the survey.
Contact Lawmakers When They Are 'Back Home'
Congressional district/state work periods are a key opportunity to visit with your Member of Congress to remind them that their retired constituents want them to act on protecting their financial security. Your U.S. Senators will be in their state offices during the following periods:
April 30th – May 4th
May 28th – June 1st
July 2nd – July 6th
August 6th – September 7th
Your U.S. Representative in the House has a similar schedule, although there can be changes as Congressional leaders deem them necessary. Call your member’s district office or your Senators’ closest state office and schedule a meeting with him or her.
Click here to find the offices and phone numbers of your elected representatives. Bring your neighbors, others within your retiree association, anybody who cares about their pension plan, retiree health care benefits, Medicare and Social Security. Let them know you want them to act now to ensure those earned benefits remain in place.
This is an election year for all U.S Representatives, one-third of the U.S. Senators and the President. There will probably be town hall meetings and campaign rallies which also provide opportunities to talk with incumbents and challengers.
NRLN National News Release - Retiree Leader Says Bankruptcies Ruining Retirees' Lives
WASHINGTON (March 1, 2012) – The lack of federal legislation to protect retirees' pensions and benefits in corporate bankruptcies is ruining the lives of retirees according to the leader of the National Retiree Legislative Network (NRLN).
"When companies file for Chapter 11 bankruptcy, retirees regularly lose their health care and life insurance benefits and frequently their underfunded pension plans are taken over by the Pension Benefits Guaranty Corporation (PBGC)," said Bill Kadereit, NRLN President. "Retirees often have their pension income reduced at the time when their expenses for health care insurance increase and life insurance is unaffordable or even unobtainable due to age or other conditions...”Read more...
NRLN Welcomes American Airlines Retirees Committee
The NRLN welcomes the American Airlines Retirees Committee (AMRRC) as its newest retiree association member. The AMRRC is dedicated to being a strong voice for all American Airlines retirees in an effort to preserving the retiree benefits that are in jeopardy because of the American Airlines Chapter 11 bankruptcy filing.
The AMRRC Board of Directors concluded that the NRLN provided strength in numbers and the NRLN's 10 years of experience in Washington, D.C. would be valuable in dealing with the complexities of the American Airlines bankruptcy. The NRLN has worked on bankruptcy issues with four retiree associations and the NRLN has the contacts on Capitol Hill where the AMRRC will need allies in order to protect the interest of American Airlines retirees. Click here to access the AMRRC website.
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