Will Ford Pension Funds survive? or should I look for another job?

I have been with Ford for 22 years. Am I kidding myself to think I will still recieve a pension?...or should I quickly find a new job and start over?

Based on data in Ford's annual report for 2006:

The value of pension benefits payable to US workers like you total $45.3 Billion as of 12/31/06.

They have assets invested to pay for those benefits equal to $44.7 billion as of 12/31/06.

Which, if you do the division, means they have 98.6 cents on hand for every $1 they owe.

This is true even though a good piece of the benefits are not payable for many years in the future.

This is a pretty good situation compared to many, especially union, pension sponsors. Many poorly managed union plans are proud to claim they have assets equal to 70 cents on the dollar.

In addition, if the worst should happen and Ford does go under, the Pension Benefit Guarantee Corporation (PBGC) exists to ensure that participant pensions (up to a certain maximum) are protected. PBGC does for pension what FDIC does for banks.

This does not mean you should be complacent. Consider these issues:

22 years is a long time and represents a considerable investment in time on your part. What is the benefit you are entitled to right now? Do you have a recent benefit statement? Do you know what you are entitled to? How can you find out?

You are probably in your late 40's, how much benefit could you reasonably expect to earn if you started fresh? How does that compare with what you'd earn if you stay put? The most common retirement plan today matches 100% on the first 3% of pay. What is 3% of your pay accumulated until retirement worth?

If Ford froze your plan (stopped counting future pay and service in the benefit) how would this affect your benefit? If it happened tomorrow, what would you need to save to make up the difference? If it happened 5 years from now?

your money will be there when you retire.

You will receive you pention

you may be offer a buy out -- but if the job seems secure i would not worry -- the future or the job and pension are two different animals!!! you will not lose your pension -- but may lose job if plant is closed!!!

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