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Originally Posted by dksuddeth
Then I imagine that they shouldn't have promised those benefits to the employee when they hired them, right? But as it stands now, with the 'all business' instead of 'pro business' outlook, we, the taxpayer, are getting stuck paying those pension benefits instead of the company that promised them.
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There is a pension gurantee fund. If GM pension fund goes under that fund should pick-up the tab. Consumers will ultimately pay the cost because the remaining companies paying into the fund will have to pay more and they will pass it on to the consumer if they can.
Many companies are moving away from the defined benefit plans. I think IBM just made an announcement of that nature.
I agree that in GM's situation everything is pointing to poor management. But ironically for those who think management is wrong for cutting costs, they needed to do more of that.