Re:McClatchy files bankruptcy
by ETHisso2017 on Thursday February 13, 2020 @12:41PM
(#22319666)
They pre-funded it assuming a given life expectancy and per-year healthcare costs. People started living past that life expectancy and healthcare costs rose much more quickly than expected...
What do per-year healthcare costs have to do with an underfunded pension?
Was one of the benefits of the pension a healthcare plan?
The article doesn't say that it was.
If it was, though, that is pants-on-head stupid. A pension is supposed to be a fixed payment investment, not a variable-payment one.
Re:McClatchy files bankruptcy
by lotsofpulp on Thursday February 13, 2020 @02:34PM
(#22320659)
They're separate benefits and don't have to do with one another. Retiree healthcare is a rare benefit in the non government world, and is usually classified as OPEB (other post employment benefit).
This shouldn't be an issue if the pension was pre-funded, which I thought was supposed to be the case in the US.