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Subject:  Re: Another reason to save for retirement Date:  10/26/2013  1:11 PM
Author:  BruceCM Number:  73646 of 88758

I too have come across a few pension horror stories, although they are relatively rare. Most have dealt with pension beneficiaries or government pensions changing some rules.

Most private pensions are insured by the PBGC against employer default, but they are not protected from overpayment claw-backs. This is why it is incumbent on every retiring employee to understand the company pension's benefit formula and how their accrued benefit is calculated. ERISA defined benefit plans are required to provide separating employees a complete statement of benefits, which will show their accrued benefit options at early retirement or full retirement age. Those who ignore these calculations do so at their own risk.

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