Pension Meltdown Continues - Verizon Joins In

This week we heard (once again) that misery loves company.

First the airlines (United, Delta) defaulted on their pension obligations to their employees, then the auto suppliers (Delphi) joined in. Now the telelphone companies are getting into the act.

Verizon announced 2 things this week: 1) it will not allow managers to build additional pension benefits and 2) it will contribute less to the health care benefits of managers when they retire. While the first will require employees to reconfigure how they save for retirement (easier if you're 35 rather than 55), the second is the real blow that will suck up a good chunk of retirement funds. (Read more.)

The Verizon deal is notable because unlike the airline and auto suppliers, the company is not in bankruptsy. In fact, Verizon 's self-assessment of Q3'05 results was that they had "a very strong quarter" which was very profitable. (Read more.)

The way has successfully been shown for all companies - pensions are new found money for corporate chiefs.

What does this mean for you? 1) If you can, take your pension with you when you leave the company. 2) Consider buying long-term health insurance if you don't have anyone to take care of you and are worried about your health. 3) Consider buying income annuities on the installment plan (read more).