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ARH

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Posts posted by ARH

  1. 15 minutes ago, Sentinel947 said:

    Pension funds (defined benefit) are to some extent guaranteed by the Federal Pension Benefit Guaranty Corporation. If an employee is vested, they will likely get some benefits, but the PBGC DOES NOT have to pay what was promised to the employees. It typically is the full amount, but given all the craziness with COVID-19 and possible bankruptcies related to that, I can't say with certainty. Defined contribution plan, any employer matches that are vested are the employees to keep. Matches can be reduced or cut at any time. 

    The future of the BSA is uncertain, and I'd never gamble my livelihood and future by hitching my wagon to an organization like that. It's on a list with a handful of other legacy companies that are circling the drain, that COVID or no COVID, I won't work for. 

    The PBGC will not pay what was owed to the employee unless the pension was fully funded (not likely given the COVID market crash) and the recipient was retirement eligible at the time of default.  The PBGC pays me about 65% of what I would have gotten without my employer defaulting - my pension fund was 86% funded and I was 25 years into my career, so not retirement eligible at the time of default.  The other nugget is that PBGC payments are fixed - once you start drawing your pension, they will never go up.  Also, the PBGC is not exactly financially robust, either.

     

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