It will be a long time before pension plan members in private industry can rest easy.

The health of most pension plans continues to improve as stock markets recover, but it will be a long time before plan members in private industry can rest easy.The blow of last year’s investment losses is forcing more employers to question their ability to continue paying the same level or type of pension benefits in future.

Meanwhile, pensioners at companies other than Nortel Networks Corp., AbitibiBowater Inc. and others in bankruptcy protection could see their payouts reduced.

Even with this years stellar stock market, rally private pension plans remain seriously underfunded and the risk of pension payout reductions  poses a serious risk for pre and near retirees.

If you are a member of a defined benefit plan (where the company funds the pension) or a defined contribution plan (where the company and you contribute funds) you should review the status of your plan as to its health and capacity to meet future pension obligations.

 If you are concerned that the plan is at risk then you should consider rolling over your pension plan, 401K to a IRA in the USA or a LIRA in Canada.

Read the full story here.

This entry was posted on 19. November 2009 at 15:01 and is filed under Pensions, Retirement. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.