iamwhatiseem
Diamond Member
- Aug 19, 2010
- 42,629
- 27,178
- Thread starter
- #21
Stopping a pension plan is when a company stops offering a plan to new hires, as well as stops contributing to it. BUT - the plan still exist, and all funds in the plan are protected by law.Stopping the plan is not the same as terminating the plan? Wow talk about legal double speak.
Terminating a plan is when a company seeks legal right to pay off members and get out of the responsibility and requirements.
They can only terminate a plan if they have all the funds necessary to
A) Transfer enough funds to continue to pay people already drawing without reducing the amount.
B) Here's the bad part - for people who have not yet received funds, they are only required to pay the full vested value - when the plan was stopped. Any increase in valuation, interest etc. - they are not required to pay.
That should be a fucking crime.