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PBGC Objects To Ormet Sale

Hearing on Wayzata’s purchase plan pushed back

May 15, 2013

HANNIBAL — Citing retirement plans that are underfunded by “over $235 million,” the federal Pension Benefit Guaranty Corp. is objecting to Ormet Corp.’s sale to Wayzata Investment Partners....

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(9)

LogHog

May-16-13 5:57 AM

Here's an idea. Why not get rid of company pensions? why not pay the employees more, if they are worth it for a pension, shouldn't they be worth more pay as you go. Gee couldn't the employee then start his/her own pensions? The answer is yes. I did that at my last job and it turned out well. But, but then I'll have to educate myself about how to invest. But, but then I might spend it before saving it? This once again seems to be the real problem. People want someone else to take care of them.

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Ragnar

May-15-13 6:33 PM

They need to change the law to require all employers to pay into a pension scheme. The law could demand that the money not be touched, that the income not be taxed, that the assets not be counted on the company's books and that the investment income not be counted in the company's financial statements.

THEN, allow it to grow tax free and never-NEVER-permit companies to promise X pension when they only have Y.

In other words, if your pension fund holds $10 million and you have 100 employees, you can only promise each employee a lump sum pension of $100,000 each.

The problem is that companies were promising defined benefits down the road before they had the money to fund them, sort of like the Ponzi Scheme known as Social Security.

It should be illegal to promise what you do not have and to fail to deliver that which you promised.

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richardwhee

May-15-13 1:18 PM

Thats the way it goes. The workers trust the union to get a good contract and as usual the union bosses look out for themselves and tell the workers it's a good contract to vote for.

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WVEXPAT

May-15-13 1:12 PM

"Pay the workers what their due!"

That's part of what got Ormet to this point. So go ahead and stick to that mantra as Wayzata walks away and the plant closes. The Union mentality in action!

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Wvcoffee

May-15-13 9:06 AM

So you think Wayzata Investment Partners should be able to walk away with a sweetheart deal negotiated by the CEO and Board? I'm betting the union isn't sitting AG the table. Geez. Read and comprehend the entire story. Pay the workers what their due!

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Johnson2616

May-15-13 8:33 AM

Wvacoffee, where do you think PBGC gets the funds to pay pension benefits to Whlg-Pitt (or whatever name) or Weirton Steel retirees? Other US companies are being charged an "insurance" fee to fund PBGC's payments, just another tax burden on US employers. Perhaps the CEOs and Board of Directors you spoke of should just set down and say "company paid pensions are no longer a part of benefits we provide".

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Triton

May-15-13 8:23 AM

Fascinates me that people think, automatically like robots, that an underfunded pension is the fault of the business and go off on the rich guy I hate white people rant. Pensions are negotiated by unions that have the same access to calculators as everyone else and yet they settle on contracts that did not call for enough contributions to the pension funds. Do you really expect that the CEO are going to say just a minute there bub, we need to pay more, you are not asking for enough. If you think that is how it works then why are not going to city council and demanding to pay more money into the public safety pensions or more taxes because there is not enough money to fix the streets. You get the same barking dogs with the same dumb chants. Pensions are messed up and the union leadership who sells out the members EVERY TIME might be more responsible for the mess than the evil white guy CEOs of America. The union never mentioned this?

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Wvcoffee

May-15-13 7:09 AM

Underfunded? Isn't that the same as writing a bad check. Start prosecuting CEO's and Boards of Directors and this stuff will stop.

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daWraith

May-15-13 6:23 AM

Wayzata is a vulture capital firm identical to Bain Capital, Mitt Romney's ex company that was demonized during the entire 2012 election.

Make no mistake, they are in for the money, and they will slash and burn to make a profit.

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