Lost my pension and then got it back.

[ingmansinc]

I had a pension from a company and before I had received a year of checks they went belly up. I figured the pension was gone. I got a lot of letters from law firms that I couldn't understand and then one day a letter comes from PBGC, Pension Benefit Guaranty Corporation, a dept. of the Fed. I didn't really understand their letter so I gave them a call to find out what they were trying to tell me. Well, the bottom line is they will pay my pension and I don't have to be concerned with all the bankruptcy letters from other law firms. Now for the reason for the post, doesn't it seem odd that we all want less government and yet here I am feeling kind of relieved that the Fed. bailed me out. Seems to me that yours and my money, taxes, got my legal questions answered and some lawyers lost work. The Fed. probably employees hundereds of people to do what should have been done by the private sector.

 

[Vulcan Bob]

Yes it is ironic but at least your are getting your retirement! Hope all is well for you.

 

[CZBrian]

The PBGC is not funded by taxes. It is funded by companies with pension plans through insurance premiums and by the assets of the pension that they took over (aka your retirement money).

Is the benefits you are receiving from the PBGC the same as what you would have received had there been no bankruptcy? The guaranteed benefits provided by the PBGC are limited to only around $50k a year I believe. Also, I'm not sure how much of a difference it makes if the pension was underfunded prior to the bankruptcy. Maybe the pension was not underfunded and the PBGC is simply administering the pension after the employers bankruptcy.

 

[feralmerril]

A few days ago my mother received $2,050 in back retirement benifits from dads job. Dad died in 2003. Only problem is mom died in 1993! I called and of course, there was a screw up!

 

[ingmansinc]

The PBGC is not funded by taxes. It is funded by companies with pension plans through insurance premiums and by the assets of the pension that they took over (aka your retirement money).

Is the benefits you are receiving from the PBGC the same as what you would have received had there been no bankruptcy? The guaranteed benefits provided by the PBGC are limited to only around $50k a year I believe. Also, I'm not sure how much of a difference it makes if the pension was underfunded prior to the bankruptcy. Maybe the pension was not underfunded and the PBGC is simply administering the pension after the employers bankruptcy.

I never questioned the funding, but rather the admin. cost possibly being tax dollars. As far as the benefit it remained the same and they told me it would be about two years before they would know if it was going to change. It still seems to me we would be better off if the return address didn't contain the word gov.