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Special Report on

Frozen Pension Plan

frozen pension plan special research report Photo by www.kentinternationalgroup.com
The decline in companies offering traditional pensions to retirees hit a new milestone this year. Almost a third of Fortune 1000 companies have now frozen this often valuable retirement benefit. Some 190 companies on the 2009 Fortune 1000 list now have frozen their pension plan, up from 169 companies last year and just 45 companies in 2004. Generally, employees can keep what they have already earned, but won’t accrue additional retirement benefits in the plan. New hires are also generally prohibited from signing up. Industries that have been severely affected by the recession were the most likely to put their pension plans ...
at the lowest level necessary to carry out its operations. Subject to other statutory limitations, the PBGC insurance program pays pension benefits up to the maximum guaranteed benefit set by law to participants who retire at age 65 ($54,000 a year as of 2009). The benefits payable to insured retirees who start their benefits at ages other than 65, or who elect survivor coverage, are adjusted to be equivalent in value.
REVIEWS AND OPINIONS
Pensions for Sale? : Pension Risk Matters
August 5, 2008), troubled banks have no business fiddling around with pension caretaking.  Citing a $2.3 trillion "pension honey pot" that could grow to $7+ trillion in a few years, Goldstein says pension buyouts would be a great prize for investment banks, hedge funds, private equity funds and insurers. (Editor's Note: I've seen estimates of much larger numbers but the message is the same. There is thought to be "gold in them thar hills.) What motivates advocates of the pension transfer movement? Let me count the ways. More than a few corporations may seize the opportunity to clean ... market research, surveys and trends
How can a company freeze your defined benefit pension plan?
My pension plan is frozen and I have 15 years before I can retire. The money in the account is not accruing It is just sitting there. How can they do that? I can't take my money out and put it somewhere else. So for the next 15 years I have money sitting and not making anything on it. Looking to lower costs and reduce future funding obligations, many U.S. companies are taking a hard look at the retirement plans they offer to their employees. The harshest scrutiny is being focused on defined-benefit pension plans, which usually reward employees for years of service with a guaranteed monthly retirement benefit. Many employers ... market research, surveys and trends

SURVEY RESULTS FOR
FROZEN PENSION PLAN

LANDAUER INC - FORM 8-K - EX-99.1 - December 2, 2009
EXHIBIT 99.1 ------------ NEWS RELEASE LANDAUER --------------------------------------------------------------------------- LANDAUER, INC. REPORTS FISCAL 2009 FOURTH QUARTER AND FULL YEAR RESULTS Revenue and Earnings Driven by Continued Execution of Strategic Priorities For Further Information Contact: Jonathon M. Singer Senior Vice President, CFO 708-441-8311 jsinger@landauerinc.com --------------------------------------------------------------------------- ... industry trends, business articles and survey research
ParaPundit: Pension Plan Losses To Depress Corporate Earnings
The need to pay more into pension plans will lower corporate earnings which will lower stock prices which will lower pension plan values. Pension plan losses are about to knock out $70 billion of corporate earnings, according to a report by consulting firm Mercer. Huge investment losses have left the funds of the Standard & Poor's 1500 some $409 billion in the red, the firm estimates in a report released Jan. 7. More than fully funded a year ago, these plans have suffered their most precipitous one-year drop in at least two decades, with the average fund now holding enough assets to cover just 75% of promised retirement ... industry trends, business articles and survey research
RELATED NEWS
Brecksville, North Royalton and Broadview Heights preparing for safety ...
Beginning in 2011, cities will face the first wave of bulk retirements for police and fire employees that enrolled in the Deferred Retirement Option Program, or DROP. Those who were at least 48 years old and had at least 25 years of service were eligible to enroll in DROP, which was instituted in 2003 as part of the Ohio Police & Fire Pension Fund. The plan "is an optional benefit that allows eligible police officers and firefighters to accumulate a lump sum of money for retirement," according to the Member’s Guide to the plan. If they choose to enter DROP, these officers and firefighters remain on the force and ... market trends, news research and surveys resources
Long Beach's pension tension: City tries to rein in skyrocketing costs
Not only were many cities seeing more revenue flow into their coffers, but also one particularly onerous cost, employee pensions, had been eliminated -- permanently, many people thought. From the 2000 to 2004 fiscal years, Long Beach had expected to pay between $30 million and $40 million annually into the California Public Employees' Retirement System, or CalPERS. Instead, a robust economy and better-than-expected investment returns created a "super-funded" pension system. During those years, no local government had to pay a dime for pensions. The good times didn't last, however, and few cities had set aside ... market trends, news research and surveys resources

INFORMATION RESOURCES

Managing your Frozen Pension Plan: A New Paradigm
Managing the Frozen Pension Plan as a Financial Obligation ... The frozen pension plan is no longer a human resource tool, but a financial obligation ... technology research, surveys study and trend statistics
Alternatives to Frozen Defined Benefit Pension Plans
Since their introduction in the 1980s, 401k plans and other types of defined contribution plans have become the primary means of retirement savings, leading many employers to freeze their current defined benefit plan and provide alternatives, such as a new defined benefit plan, a new defined contribution plan, or an enhanced existing defined contribution plan. Defined benefit pension plans have played an integral role in developing retirement protection for millions of American workers. These pension plans have allowed retirees to secure monthly income for life, with payments based on service and salary. Such plans in the United ... technology research, surveys study and trend statistics
Not So Golden: Employees -- and Employers -- Feel the Pinch from ...
The golden years for most Americans appear increasingly threatened by the global financial crisis. Retirement accounts have lost from $2 trillion to $4 trillion as stocks have tumbled nearly 50% from their peak in 2007. For Americans facing retirement, the details of how these plans work may be fuzzy, but the big picture is clear: Whatever comfortable cushion they may have had is now gone, and the process of building it back up will be arduous and long -- perhaps too long for employees who are nearing retirement age. The pain isn't limited to individuals with plummeting 401(k)s. Sponsors of private and public pensions -- ...
REAL TIME
FROZEN PENSION PLAN
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QUESTIONS AND ANSWERS
Retirement Planning: Frozen Pension Plan, summary plan description ...
My husband works for a company who offered a pension plan that was "frozen" in (meaning no compensation or years of service credit) February 2005.  The company has indicated that employees cannot access these funds unless they retire or separate from the company.  The company has since started a 401K plan.  I wanted to know if the "frozen" pension plan is untouchable and if can be rolled over to an IRA?  I realize you do not have particulars relate to he pension plan, so what would I need to know about the plan to determine if it can be rolled?  Is there something on the Form 5500 ...
How can a company freeze your defined benefit pension plan ...
My pension plan is frozen and I have 15 years before I can retire. The money in the account is not accruing It is just sitting there. How can they do that? I can't take my money out and put it somewhere else. So for the next 15 years I have money sitting and not making anything on it. Looking to lower costs and reduce future funding obligations, many U.S. companies are taking a hard look at the retirement plans they offer to their employees. The harshest scrutiny is being focused on defined-benefit pension plans, which usually reward employees for years of service with a guaranteed monthly retirement benefit. Many ...