QUESTION:

If my ex-company goes bankrupt, will I still entitle for my early retirement payment at 56?

I worked for a company for 18 plus years, then I resigned. Instead of getting a pension check for those years I had worked, the company told me that I will receive my early retirement payment when I reach the age of 56. Right now that company is about to go bankrup and I just turned 40..my question is:
What if the company went bankrup before I reach that age? Will I still entitle for my early retirement payment at 56?
asked by tsaephanh, 12/23/2008
Categories: Early Retirement, Pre Retirement
ANSWERS:
Answered by: SilverSurfer, 12/24/08
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Since each company and person's situation is unique its difficult to answer without more details.

It depends on a number of factors such as the amount of your pension, how its funded, whether your firm does go bankrupt and then if so if the PBGC (Pension Benefit Guarantee Corporation) takes over.

The PBGC is a government program that will take over and pay benefits for failed pension plans, however the PBGC has a maximum annual benefit and if your retirement benefit was higher than that maximim that incremental income could be at risk.

The PBGC site and some useful links are below.

As a start you might want to get in touch with the Human Resources department of your company and whoever administers the pension plan.

Some background:

http://www.nytimes.com/2006/10/24/business/retirement/24pension.html

http://www.pbgc.gov/

http://www.pbgc.gov/about/pensionend.html

http://www.pbgc.gov/about/insurepension.html

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