Thread regarding Boeing Co. layoffs

I know a lot of people that took the lump sum already.

@1xdy+16vPnlyw as was posted in another thread, Boeing has been stuffing its pension fund with Boeing stock. Which was great when it was 400/share. Not so good now.

My bet is that if they declare bankruptcy it will be closer to 30 cents on the dollar for your pension.

I have not taken it yet from the other company, but the good news is that once the PBGC sends you a letter (usually at 45 years old, that's when I got my first one) the benefit will not go down from that number. But as stated before, it won't be as much as you would have gotten if Boeing was still administering the pension.

Thanks for the quality reply. Explaining the pension.

@1qap+16vPnlyw

I really wish I could live on your fairytale land.

1. Let take United Airlines (but there are plenty of other examples). When United went bankrupt the court removed the obligation from the company to pay pensions. Both current and future.

2. Now you are right, it does go to the PBGC to administer. However, what is transferred to the PBGC is all there is. That total asset never goes up. Therefore you don't get your whole pension. How do I know? Well I left a company that went bankrupt. I know how much I should have made per month when I retire. But the actual amount is 42 cents on the dollar I should have made. I have heard from others at other companies it can be as high as 60 cents and as low as 30 cents. It just depends on how well the pension was funded when not was transferred.

So you will get something, but it won't be what you are owed

I used the cares act to take my money out of the VIP and looking for a way to make that money work for me vs it dropping like a rock. If you take the carea act, you have 3 years to pay back the tax and the 10% early withdrawal penalty is waved.

In the LIKELY event that Boeing becomes bankrupt (currently has a $25 Billion loan from newly issued bonds back in April 2020, and these bonds are 1-grade above Junk Level Status).

Boeing's Pension Trust Funds are protected in two ways:

First, they are managed separately from all other Boeing operations and are subject to U.S. government regulations under the Employee Retirement Income Security Act of 1974 (ERISA). Established laws for managing all corporate pension funds to help guarantee that the benefits will be available to people as they retire from the workforce.

Second, corporate pension plans are backed by the Pension Benefit Guaranty Corporation, a government agency (PBGC). PBGC insures employee benefits in the event there are insufficient funds in a trust plan to meet its obligations. All of Boeing's pension plans currently are fully funded under ERISA guidelines.

Note: Boeing defines its obligation to provide pension benefits as LIABILITIES and these LIABILITIES are included in the company's quarterly GAAP quarterly financial statements.

Boeing is a dying company, which is why it is time to leave.

@ejt+16vPnlyw Your last point is especially good, but it goes both ways.
If they get rid of all the younger people because they're a lower level, then who are the older people going to teach those skills to in the next 5 years?
There needs to be a knowledge transfer, and Boeing's cutting so much from the top and the bottom that there's hardly any time to effectively do it.

If Boeing file for bankruptcy then the lumpsum option of their pension for SPEEA and Non-Union employee may disappear. Keep in mind that all the cash Boeing have on hand are borrowed money.

Question 2, why take a buyout if they lay you off you will get the same benefits?

Question 3, if Boeing get rid off all the old people, the people that know stuffs. What will Boeing become?

Newbie worried?

Stay and take a gamble your pension your social security and your 401k how much is enough nobody’s guaranteed anything and we ain’t getting younger And with the current virus 19 1/2 May severely shorten your life or lease the quality of it.
God bless