The world of pensions, already becoming a bit of a holdover from a different era in America, took a new twist late last week with word that Ford Motor Company (speaking of that different era) has figured out a clever way to clear up its obligations to current retirees.
It's called a lump-sum payment. And it's not that much unlike the deals you see pushed on those late-night TV ads with the bus full of singing Vikings, offering folks to cash in their structured settlements and annuities. Or, like a gigantic 401(k) payout for those who've lost their jobs.
Under the plan, 90,000 salaried retirees, plus former employees who are due pensions, will be offered the golden ticket, a voluntary, one-time, lump-sum cash payment. In exchange, the retired workers will have to agree to waive all their rights to future payments. Exact details weren't released, but the whole plan is set to begin by July 1. What those employees choose to do with their cash, also up to them.
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