UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Author: rgood Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76397  
Subject: pension plans Date: 10/19/1998 8:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have a question about a totally sponsered pension plan by company A.

I worked for co. A for 10 yrs (i am vested in the pension plan). The business unit (that i work in) was sold to co. B.

Co. A did not roll over the pension benefits (money) to co. B.

Co. B states that though yrs of service at co. A will count towards vacation time and medical leave and other things, yrs. of service in co. A will NOT count towards pension in co. B. Co. A is not willing to roll the pension money over to Co. B.

Questions: Is Co. A in their legal rights? I'm 35 yrs old. when i retire, will i have to hunt down Co. A to get my pension money from them?

Also, my pension money from co. A is cut by 40% (ouch)
since my years of service is no longer accumulating with them.

As far as pension from co. B, years of service start jan 1, 1999.
Print the post Back To Top
Author: JABoa Big gold star, 5000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6104 of 76397
Subject: Re: pension plans Date: 10/19/1998 10:11 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
rgood,

I'm pretty sure the answers to your questions are Yes and Yes. If you don't get a better answer from one of the knowledgeable TMFers, you want to do a Web search looking for ERISA and also Pension Benefits Guarantee Board. (Not sure if this last name is correct.)

When our company was acquired in 1986, a few people were offered the chance to accept the old pension plan, which was generous. But those under 50 had to accept the plan of the acquiring company. The "49ers" complained bitterly but to no avail. Fortunately, our service was counted.

You might have some hope about time of starting in the Company B plan, but even that might be iffy (I'm just guessing here), since you often don't get health insurance until 3 or more months on the job.

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6126 of 76397
Subject: Re: pension plans Date: 10/20/1998 12:59 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Rgood, and welcome. You asked:

I have a question about a totally sponsered pension plan by company A.

I worked for co. A for 10 yrs (i am vested in the pension plan). The business unit (that i work in) was sold to co. B.

Co. A did not roll over the pension benefits (money) to co. B.

Co. B states that though yrs of service at co. A will count towards vacation time and medical leave and other things, yrs. of service in co. A will NOT count towards pension in co. B. Co. A is not willing to roll the pension money over to Co. B.

Questions: Is Co. A in their legal rights? I'm 35 yrs old. when i retire, will i have to hunt down Co. A to get my pension money from them?

Also, my pension money from co. A is cut by 40% (ouch)
since my years of service is no longer accumulating with them.

As far as pension from co. B, years of service start jan 1, 1999.


Yes, everything is legal and above board. You no longer work for A and thus are no longer in that plan. A is not required nor does it have to transfer your vested interest in that plan to B's plan. Also, B is under no obligation to credit you with years of service in its plan and can impose a waiting period before you become eligible for that plan because you are a new employee of B for that purpose. And yes, when you finally retire you have to track down A to get the pension due you at that time.

Looks like you were in the wrong place at the wrong time.

Regards…..Pixy


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Next Thread
Advertisement