topic Re: Pension with bankrupt company in Personal Finance

Pension with bankrupt company

MakingProgress — Thu, 19 Apr 2018 14:49:32 GMT

When I retire in about 142 years, I have a small (about $100/month) pension that will be due me from Carson Pirie Scott. Carson's have been aquired several times since I worked there and is now part of Bon Ton Stores. Bon Ton announced yesterday that they will be liquidating all stores. This benefit won't make or break me in retirement, but I am curious as what will happen and how I will be notified.

Does anyone know what happens to that pension plan, will it automaticlly be taken over by the Pension Benefit Grananty Corporation ? Will the Bankruptcy court make rulings related to what happens to the Plan? Has anyone had a similar situation? How were you notified about changes to the Plan due to liquidation?

Re: Pension with bankrupt company

pipeguy — Thu, 19 Apr 2018 15:38:17 GMT

Will it automatically be taken over by the Pension Benefit Guaranty Corporation? No, but it might and even if it does, that's not a guarantee.

https://www.gao.gov/highrisk/pension_benefit/why_did_study

Congress tweaked the funding for PBGC during the 114th (the Bipartisan Budget Act of 2016, which included the Multiemployer Pension Reform Act) basically because of the Central States Pension liquidity crisis, but the PBGC is far from healthy financially. The Central States Fund still wants PBGC to take over that plan, but in fact, if they did it would bankrupt the whole program.

https://www.forbes.com/sites/georgeleef/2016/08/05/who-will-bail-out-insolvent-union-pension-funds/#b5c8f6643544

UPS and now Kroger have pulled out of Central States, but this is still the timebomb for PBGC and bailing out mismanaged pension plans. Unfunded pension liabilities continue to be a massive problem starting with the USPS and extending to many (most?) State, County, City public service plans.

http://www.pionline.com/article/20171213/ONLINE/171219902/kroger-officially-withdraws-from-teamsters-central-states

Probably more information than you wanted, but I know something about this issue

If I were you, I'd start saving for retirement on my own, through an IRA hopefully with added employer matching or contribution, plus sock away a bit each month/year in a longterm "boring" investment fund and not count on anything from the PBGC (if it's there good, but don't count on it).

Re: Pension with bankrupt company

Anonymous — Thu, 19 Apr 2018 21:56:28 GMT

www.pbgc.gov a government agency where you can search for pensions

Re: Pension with bankrupt company

Anonymous — Fri, 20 Apr 2018 01:51:53 GMT

142 years away? How are you doing so well?

I am already trying to secure my future sleeping quarters under the local freeway overpass and "by the norm" I have 20 more years until retirement.