Mike, GM did go bankrupt. US tax laws structured how the funds were kept. (Yes, we'll allow these tax breaks for your higher paid individuals, but the money will be co-mingled with all other corporate assets.) Regards, Bob S.
On Sun, Feb 27, 2011 at 9:37 AM, mike wilson <[email protected]> wrote: > On 27/02/2011 17:28, frank theriault wrote: >> >> On Sun, Feb 27, 2011 at 11:20 AM, Bob Sullivan<[email protected]> >> wrote: >>> >>> And Frank, >>> I want to tell you something that will make you happy. >>> We visited rich friends in a gated community in Naples Florida. >>> 4 people on their block were early retirees from General Motors. >>> Their pension benefits were capped at $72K. >>> (I know that's a lot, but it's a lot less than they were getting.) >>> And the highest ranked among them has already sold and move back to >>> Michigan. >>> They were all drawing money from 'defered compensation plans', >>> where GM held back some salary to pay them later at a lower tax rate. >>> Guess what. In bankruptcy, all those funds go to the creditors. >>> It puts a 6 figure crimp in their lifestyles... >>> Regards, Bob S. >> >> That doesn't make me particularly happy, Bob. First of all, I'm sure >> these people worked hard for their money, often working long hours, >> weekends, with many business trips and lots of pressure. I may not >> agree that the work they did was for the betterment of all, but they >> had every right to rely on agreements made with their company and to >> pattern their life accordingly. >> >> The fact that due to GM making bad decisions they lost their pensions >> or a portion thereof only means that creditors got that money - and >> I'm sure that banks reaped most of that benefit. I'd rather see the >> money in the hands of an individual than a huge faceless corporation. >> >> I don't think there's anything happy about your story. > > Agreed. If they had been in a union, it would hopefully not have allowed > those funds to be kept in a place available to creditors. Did GM actually > go bankrupt? > > -- > PDML Pentax-Discuss Mail List > [email protected] > http://pdml.net/mailman/listinfo/pdml_pdml.net > to UNSUBSCRIBE from the PDML, please visit the link directly above and > follow the directions. > -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
