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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: re3 who wrote (147871)	2/22/2009 10:00:45 AM
From: Rocket Red	Respond to of 312983

Retirees would take a hit in a GM bankruptcy because the provincial fund covers only a portion of the monthly payments up to the first $1,000. If, for example, a pension plan held assets equal to 80 per cent of liabilities when it was wound up, a retiree receiving $3,000 a month before the wind-up would get $800 of the first $1,000 a month, financed by the assets in the plan. The Ontario fund would make up another $200. But the remaining $2,000 a month would be reduced to $1,600 a month - based again on that 80-per-cent figure - leaving a shortfall of $400 a month because of the $1,000 cap on the fund.