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"They are required, by law, to have 100 cents set aside for every dollar
(present and future) that it is contractually obligated to pay out. The stronger companies have higher obligation-covering reserves (as an example, I posted the illustration from Allianz, and they carry something like 106% to 108% coverage reserves.)"


Dave, my man ! Your response is the reason I am ALWAYS civil
and courteous on these boards. I did not know that they were
required by law to carry those reserves, and I stand corrected
in my assumption.

I appreciate the schooling you just gave me, in the not toooooo
distant future I will have to decide upon taking a pension or a
lump sum buyout. I know that a pension is nothing more than an
annuity, and I might be able to take the lump sum and purchase an
annuity on my own, that has a COLA built into it. My employers
plan has no inflation protection. I also have a 401k, and will
stay in the stock market with that, but I do want the guaranteed
monthly income that a pension or annuity offers.

Have a great weekend.
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