CAL A fund liquidity question.

Paul R. Smith

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Was explained by the MEC chair that another Early out program was not offered in this mitigatin as it would put a run on the bank making a liquidity shortfall. This in effect would eliminate the lump sum option until the fund reaches adequate funding levels. What happens in 2013 and on when retirements start going out the door at the rate of 200 a year? (appx)
Has this been discussed? Is this going to make the lump sum unavailable thereafter? I am not bitching about the gummers just a question.
 
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EWR_FO

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Was explained by the MEC chair that another Early out program was not offered in this mitigatin as it would put a run on the bank making a liquidity shortfall. This in effect would eliminate the lump sum option until the fund reaches adequate funding levels. What happens in 2013 and on when retirements start going out the door at the rate of 200 a year? (appx)
Has this been discussed? Is this going to make the lump sum unavailable thereafter? I am not bitching about the gummers just a question.
Supposedly the performance of the market has been making up ground and, if current trends continue, should close any shortfall by the time the retirements start (again). I'll believe it when I see it.
 

CitationLover

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80% is the magic bullet. Below that and Lump Sums will have to be reined in, that's federal law.
 
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