[goodnesswins]

Please explain....”pension funds that are not separate from the corporation”

[pabianice]

DEC’s pension funds (now HP or whomever is the current iteration of DEC) are in a separate retirement fund entity. They have no financial ties to HP or any other public corporation. HP’s bankruptcy would not effect retirees’ pensions.

[Richard Kimball]

Well run pension funds will be set up by an independent entity. The investments will not be in the corporation, but in a broad spectrum of investment vehicles. Those pension funds that are part of the corporation are dependent upon the health of the corporation for their solvency.

If I understand correctly, GM and subsidiaries negotiated retirement benefits intending to pay them out of future profits. That meant they created future liabilities without funding them. Union retirees are essentially sitting on a pile of bad debt that won't be repaid.