What happens with pension after company bankruptcy?
If you work for a company that has a pension, should you be worried? What protections do you have? Will all the money you have been paying into your retirement just be gone? Recently, auto giant General Motors and electronic leader Circuit City filed for bankruptcy leaving many wondering “What happens to their pension”. Whether you’re an employee of theirs or any other company that offers a pension, here’s what you need to know.
Insurance On Your Pension Plan
Fortunately, it is not as bad as most people think! There are safeguards in the United States to prevent you from losing your pension plan. In the United States every defined-benefit retirement plan is insured, at least to a point. Most will receive all or at least most of their company pension even if your company goes bankrupt. However, in some cases, it may not be every penny you expected.
Also be sure to check out my article on, “Should I Roll My Pension Into an IRA” for some options on your pension plan.
