Quote:
Originally Posted by Barefootsies
When a company (USPS) or even a city (Detroit) files for bankruptcy, do you believe that their workers should retain 100% of their legacy benefits despite the institution is bankrupt?
That appears to be a major sticking point in some of these school districts, cities, companies, and even state government jobs. The 'institution' has become insolvent, but the legacy workers should keep their forever benefits and free healthcare.
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They should be able to keep them, but not at 100%.
We get tagged about once a year with a customer going bankrupt and to date we've never recovered a penny. It sucks when it happens but we still have a steady stream of revenue.The problem with most corporate bankruptcy proceedings is that the trustee(a large law firm) always walks off with the biggest amount of dollars.
It would be difficult to negotiate with legacy benefit holders but 50-60 cents on the dollar is better than zero cents. A lot of people that I know that are retired, do have other income streams and the pension is often just the icing on the cake.
Some sort of mediator that could look at a few years worth of tax returns could come up with a reasonable percentage for the folks.