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Home > Careers & Employment > Financial Services > Can employers delay pension payouts when in financial trouble?

Can employers delay pension payouts when in financial trouble?

Category: Financial Services

stevensteven


If an employer is filing for bankruptcy or being bought by another comapny can pension plan payouts be interrupted

cainvest1
cainvest1

No. Pension funds are held by a custodian. They are not part of a companies day to day operating funds. They are guaranteed up to a limit by the Pension Benefit Guaranty Corporation (PBGC)

If a company with a pension plan goes BK the PBGC will take over payments.

There can be reductions as a result of actions by the PBGC in certain circumstances.


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