Ask Experts Questions for FREE Help !
Ask
    Dudleynme's Avatar
    Dudleynme Posts: 20, Reputation: 2
    New Member
    		  
    #1

    Oct 10, 2008, 02:25 AM
    Losing pensions
    With the money crunch we are seeing now I am just wondering if people who have been receiving pensions from the companies they spent their careers working for will continue to receive those pensions or are those funds drying up too? Is there anything the individual can do to rescue their money? I am not in this situation, myself, but I have friends and wonder what will happen to them. They are asking me so they don't know either.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Oct 10, 2008, 07:19 AM

    If people are receiving payments from a defined benefit plan, most likely those payments will continue. All such plans are under the oversight and protection of ERISA. This law requires that minimum funding be maintained for future obligations. It also provides for insurance of the plans under the PBGC.

    However, money held in defined contribution plans, like 401Ks, IRAs, etc will see the value of those accounts diminsh.
    Dudleynme's Avatar
    Dudleynme Posts: 20, Reputation: 2
    New Member
    		  
    #3

    Oct 10, 2008, 07:23 AM

    Thank you. I will relay this message to my friends.

    Thanks for taking the time to answer.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounting for Pensions, Am I right? [ 1 Answers ]

I have a pension problem. I have attached an excel spreadsheet with a problem and some multiple choice questions. I think I may have done it right. Can someone help me with any corrections that may be necessary and tell me why? Thank you.

Pensions [ 1 Answers ]

ABC Corporation defined benefit pension plan specifies annual retirement benefits equal to: 1 .6% * service years * final year's salary, payable at the end of each year Emily Smith was hired by ABC at the beginning of 1989 and is expected to retire at the end of 2023 after 35 years of...

View more questions Search