Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Tell It Right

The problem with the PBGC is that the premiums are not risk based.


39 posted on 12/08/2022 6:33:52 AM PST by Wally_Kalbacken
[ Post Reply | Private Reply | To 34 | View Replies ]


To: Wally_Kalbacken
"The problem with the PBGC is that the premiums are not risk based."

I believe the PBGC's flat rate premium (fixed dollar amount per retiree) is assuming the pension has something like 50% or 60% of the portfolio in bonds. Anything less than that (which means more in equities) puts the pension into the variable rate premium with a rider based on portfolio allocation.

43 posted on 12/08/2022 6:39:59 AM PST by Tell It Right (1st Thessalonians 5:21 -- Put everything to the test, hold fast to that which is true.)
[ Post Reply | Private Reply | To 39 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson