How can airline execs make their pensions bankruptcy-proof?

Post #98,224 by drewk 4/23/03 12:22:29 PM Reply	How can airline execs make their pensions bankruptcy-proof? Was listening to this story on the radio this morning. Employees are pissed that the executive pensions have been put in a trust that is immune to bankruptcy, but theirs has not. First, how can any type of compensation be made bankruptcy-proof? Second, if this is possible, why isn't it standard for all pension funds? === Implicitly condoning stupidity since 2001.
Post #98,255 by a6l6e6x 4/23/03 1:29:23 PM Reply	Simple. You pay for it up front. You can for example buy life insurance where you pay a [link\|http://ww2.northwesternmutual.com/tn/insprods--singlepremlife_pg\|single premium]. It's just a current one time expense. The pension deal could be a variation on that idea. Alex Men never do evil so completely and cheerfully as when they do it from religious conviction. -- Blaise Pascal (1623-1662)
Post #99,608 by mhuber 5/1/03 9:37:38 AM Reply	Get the money out of the company I guess it isn't really bankrupcy proof, but if the money no longer belongs to the company, it is safe from that company's bankrupcy. Why not make it standard? I don't know. It is pretty common in some areas. I haven't been offered a regular pension since 1988. 401K's, IRAs, etc. are the employee's money, and thus protected from the company's problems. I might guess that the pension fund is a company asset (401K's etc. are the employee's asset, not the company's) and thus the company could borrow against it or something. It also may be that pensions are funded like Social Security - your money doesn't really exist now and current funds are going to retirees. ---- Whatever

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