Could Your Pension Disappear? 5 Steps to Protect Yourself

Jan 9, 2014 · What “pension reform” means to you “All told, U.S. state and municipal pensions are underfunded by at least $1 trillion, and perhaps much more,” Bloomberg reports. Underfunded pensions ...

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Could Your Pension Disappear? 5 Steps To Protect Yourself

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FAQs about Could Your Pension Disappear? 5 Steps to Protect Yourself Coupon?

Will a single-employer pension plan disappear if a company goes bankrupt?

Some single-employer pension plans are underfunded, and the money they need to cover current and future pensions is not readily available. But that does not mean the pension plan will disappear if a company goes bankrupt. ...

What happens if an employer terminates a pension plan?

If your employer terminates its pension plan due to bankruptcy, the Pension Benefit Guaranty Corporation (PBGC) will step in if the plan is covered. It will then pay employees any pension benefits they’ve been promised that the employer can’t make good on, up to the guaranteed maximum amount. A company’s pension finances are separate from its own finances. ...

Will a pension plan disappear if a company goes bankrupt?

But that does not mean the pension plan will disappear if a company goes bankrupt. Federal law requires that promised benefits should be kept separate from an employer’s business assets and held in trust, says Norman Stein, a professor of law at the Kline School of Law at Drexel University and an adviser to the Pension Rights Center. ...

Who can help me find a missing pension?

The federal government’s Employee Benefits Security Administration (EBSA) has benefits advisors who can help you find a missing pension, get you up to speed on your rights, and even intervene with a plan administrator on your behalf. ...

Can a pension plan be cut if you're over 80?

The law prohibits cutting benefits for people over 80 years old or who are disabled, Stein says. If your plan is in danger of running out of money, you must receive a “notice of insolvency” alerting you about any cuts to your benefits. The Treasury Department lists plans that have applied for benefit suspensions and the status of each. ...

What should I do if I'm rushing into a pension option?

1. Take your time. The worst move you can make is rushing into a pension option without first evaluating all your choices. Many pension option selections are irreversible once you have committed to them, and even the plans that allow you to make a change give you only a brief window before locking you into that pension option forever. ...