Pensions are guaranteed by the federal government in the event of bankruptcy.... the real worry here is frontier filing, invalidating our contracts and changing our salary and benefits...if your job remains
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Your CWA contract protects the lump sum payout if the Pension Fund is 80 percent or more funded! That includes California and all other Frontier states. If the Fund is below 80 percent, you will get an annuity by Federal Law. I hate to tell you, but your pension is now part of the general Frontier pension fund. After the Frontier conversion, April 1,2016, all pensions from CTF were moved to the one Frontier pension fund for all craft associates company wide. If the company goes Bankrupt, your pension goes to the government and you will get 40 to 70 percent of your pension but must wait to you turn 65 years old to get it as an annuity only.
So no cwa contract in California will protect the lump sum?
So California employees could also lose their lump sum?
Good point and well said
We also have a CWA Union Contract! But the Contract cannot protect you if the Pension Fund dips below the 80 percent funding level. By federal law the company cannot offer you a lump sum if the pension fund goes under that 80 percent level, and there may be other restrictions as well. An annuity is what you may get. That is why we all need to be very vigilant with these numbers.
They CAN'T take away the option its in the union contract (cwa WV that is)
They take away the option its in the union contract (cwa WV that is)
So in other words they do not have enough money to pay the pensions that they owe if I am reading this correctly.
Reading the april 7,2017 Annual Pension Funding Notice for Frontier Communications. Please read the year end assets and liabilities as of December 31,2016. Market value plan assets were 2,615,266,425. On the same date, the plan liabilities using market rates were 3,340,734,687. A difference of -725,468,262. Please do your own home work on this.
How do you know? Are there any sources or numbers you can tell us about without giving up anonymity? Thanks!