Studebaker's pension plan failure questions

[maxpower1954]

I have seen conflicting information on the pension plan debacle when South Bend was shut down in 1963. Some sources say all pensions were affected to some degree, others state only workers with less than 20 years had their pension reduced or eliminated. Anyone know the true story? My interest is personal, because the pension disaster at Studebaker lead to the establishment in 1974 of the Pension Benefit Guaranty Corporation (PBGC) which now manages my airline's failed defined benefit plan. Link below to the history site of the PBGC detailing Studebaker's role. Russ Farris

http://www.pbgc.gov/about/history.html

[doug]

Were you at T.W.A. too?

[jimmijim8]

The PBGC took over my pension plan because the Company went bankrupt. Even though the plan was supporting itself {paying the retirees with checks and health benefits}it was still growing. The company missed 2 payments to the fund. The prospective buyer ISG wanted no affiliation with the pension plan and made it known that if they were required to assume the fund, forget about them purchasing. Some how the powers that be, ISG, ISU{the local union} and PBGC snuggled as a threesome {voila}squeaky wheels were greased, the pension plan was swoofed up by the PBGC and the sale went through. At this time there were 3000 employees. 10 months later ISG {International Steel Group} sold all their bargain bought steel mills to Mittal Steel. Now 1000 people work at my former place of employment. Went from a fully integrated steel mill to a tin plate producer in 1 1/2 years time. Thank you PBGC. My pension went from $1425.+ lifetime healthcare to $900. without healthcare for me and the wife. jimmijim

Stude Junkie+++++++Do it right the f$$$$ Time. Never mind. Just do it right. When youre done your done. You'll know it.

[DEEPNHOCK]

Please be sure to do accurate research and NOT just repeat what others have written.
There were other issues at work here, and modern news sources have rewritten history.
ERISA was a regulatory act that Bobby Kennedy worked to get passed.
But please be careful to do honest and accurate research.
What Studebaker did with their pension plan, while not popular, was not illegal at the time.
And Studebaker wan not in bankruptcy at that time, which alters all the rules...

quote:Originally posted by maxpower1954

I have seen conflicting information on the pension plan debacle when South Bend was shut down in 1963. Some sources say all pensions were affected to some degree, others state only workers with less than 20 years had their pension reduced or eliminated. Anyone know the true story? My interest is personal, because the pension disaster at Studebaker lead to the establishment in 1974 of the Pension Benefit Guaranty Corporation (PBGC) which now manages my airline's failed defined benefit plan. Link below to the history site of the PBGC detailing Studebaker's role. Russ Farris

http://www.pbgc.gov/about/history.html

[DEEPNHOCK]

Did not that International Steel deal have roots way back when with International Harvester and Wisconsin Steel?
That shell game affected thousands of pensioners too...

quote:Originally posted by jimmijim8

The PBGC took over my pension plan because the Company went bankrupt. Even though the plan was supporting itself {paying the retirees with checks and health benefits}it was still growing. The company missed 2 payments to the fund. The prospective buyer ISG wanted no affiliation with the pension plan and made it known that if they were required to assume the fund, forget about them purchasing. Some how the powers that be, ISG, ISU{the local union} and PBGC snuggled as a threesome {voila}squeaky wheels were greased, the pension plan was swoofed up by the PBGC and the sale went through. At this time there were 3000 employees. 10 months later ISG {International Steel Group} sold all their bargain bought steel mills to Mittal Steel. Now 1000 people work at my former place of employment. Went from a fully integrated steel mill to a tin plate producer in 1 1/2 years time. Thank you PBGC. My pension went from $1425.+ lifetime healthcare to $900. without healthcare for me and the wife. jimmijim

Stude Junkie+++++++Do it right the f$$$$ Time. Never mind. Just do it right. When youre done your done. You'll know it.

[jimmijim8]

No Jeff. International Steel Group.

Stude Junkie+++++++Do it right the f$$$$ Time. Never mind. Just do it right. When youre done your done. You'll know it.

[bonehead007]

There are many sights if you search Studbaker Pension Termination. Heres one that looked interesting .

http://www.soa.org/library/monographs/retirement-systems/the-future-of-pension-plan-funding-and-disclosure-monograph/2005/december/m-rs05-1-iii.pdf

The bottom of page 3 of the article explains the levels of pensions that were given to Studebaker employees. May or may not answer your question.






New Jersey & Studes Perfect Together

[Collection Doctor]

quote:Originally posted by DEEPNHOCK

ERISA was a regulatory act that Bobby Kennedy worked to get passed.

You may want to research Bobby Kennedy's role in the passage of ERISA. The Employee Retirement Income Security Act (or ERISA) was actually passed in 1974, some 6 years after his death. It was in direct response to what had occurred at Studebaker as well as the mismanagement of the Teamster pension fund by Jimmy Hoffa.

Today it also covers many heath insurance plans (except most notably those that are self funded).

[maxpower1954]

quote:Originally posted by bonehead007

There are many sights if you search Studbaker Pension Termination. Heres one that looked interesting .

http://www.soa.org/library/monographs/retirement-systems/the-future-of-pension-plan-funding-and-disclosure-monograph/2005/december/m-rs05-1-iii.pdf

The bottom of page 3 of the article explains the levels of pensions that were given to Studebaker employees. May or may not answer your question.








New Jersey & Studes Perfect Together


Thanks Bonehead007, that's EXACTLY the information I was looking for!

Russ Farris

[DEEPNHOCK]

I do believe I read in one account where he was active in the post Studebaker pension change fallout.
That would have been 'after' his attorney general days ('61-'64)....
Maybe it was during his campaign time? I don't remember..
Maybe it was early on, but I do recall where he was given some credit for it coming to the forefront.
Not being a historian, I might be skewed some...
But I am scarred from pic's from nit's anyways
Jeff[8D]

quote:Originally posted by Collection Doctor

quote:Originally posted by DEEPNHOCK

ERISA was a regulatory act that Bobby Kennedy worked to get passed.

You may want to research Bobby Kennedy's role in the passage of ERISA. The Employee Retirement Income Security Act (or ERISA) was actually passed in 1974, some 6 years after his death. It was in direct response to what had occurred at Studebaker as well as the mismanagement of the Teamster pension fund by Jimmy Hoffa.

Today it also covers many heath insurance plans (except most notably those that are self funded).

http://community.webshots.com/user/deepnhock