Don't overlook these!
Updated for 2012
The Pension Benefits Guarantee Corporation (PBGC) is a quasi-federal agency.
The purpose of the PBGC is to protect employee pension plans (similar to FDIC insurance for bank depositors) against default of benefit payments by the employer.
Participating employers pay an annual premium to the Pension Benefits Guarantee Corporation.
PBGC Payments to Retirees:
Retirees entitled to receive payments from the PBGC generally do no receive the full amount of the pension they were originally promised
The PBGC generally pays a smaller benefit amount offering affected retirees some financial relief.
To avoid the potential problem of not having adequate funds to provide each retiree a specific pension benefit at a future date, many companies are now using defined contribution plans to provide retirement benefits for their employees.
With a defined contribution plan:
If you, as the employer, have control over the plan or its assets, you are required to be bonded. The idea is to protect employees should you decide to abscond with the company's loot.
Copyright © 2008-2013 Larry Villano. All rights reserved.