Pension Default Question

Nov 12, 2008 2 Replies
Jump to replies (2)
A

I previously worked for a large US Corporation with a defined pension plan. A few years ago I requested and received a pension estimate from them based on my age at retirement.



I expect to start collecting the pension in a few years (although I could start collecting now at a reduced amount).



The company is currently hitting hard times. If the company goes out of business, or is bought out what are the chances I will lose my pension? (I'm thinking of the United Airlines fiasco.)



Would it make a difference if I were already receiving the pension?



What are the US Government guarantees on pension plans?



Thanks, Art



Vote
Twitter Facebook LinkedIn
D

Poke around on the Pension Benefit Guarantee Corporation's website:

formatting link
. I'll bet you can find all that you want to know there. Or google something like "government pension guarantee" for other sites.

Dave

Vote
Twitter Facebook LinkedIn
A

If under 65 you would receive a reduced pension but in no case more than $54K a year. The United pilots had pensions in excess of $54K

For gory details see

formatting link

Simplistically, if your pension is under $54K a year it would continue to come, if over, it would be reduced

See

formatting link
. Note that while the Pension Benefit Guaranty Corp could go broke I suspect that the government would bail it out>

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required