On today’s podcast I am going to discuss several changes that we have seen recently for pension plans. If you participate in a defined benefit pension plan currently or if you have ever participated in a defined benefit pension plan make sure you listen to this one.
We’ve seen many companies either freeze their pension plan and some have completely terminated their pension plans altogether.
Many companies have adopted 401(k) plans instead for two main reasons. First, they cost quite a bit less, and second this transfers all the investment risk from the company to the employee.
What types of changes might be made? Well, the company may freeze the pension plan, they may terminate it, or it could be a combination of both including lump sum buy out options.
How does this all work and what do you need to consider and beware of if you receive a notification regarding a change to your pension plan? On this podcast I am going to get into all the details.