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Good News For People Who Take Charge17 08 06 20  17
-------- Of Their Own Future
The law also open makes it harder for companies to under-fund their pension plans. Unscrupulous companies have been promising some workers that they will receive some amount of money upon retirement, while at the same time knowing they do not have the funds to keep the promise. The law might force some companies to either fund the pension plans adequately or stop making the promise that they will give a pension without enough money to back it up. Current pensioners will benefit since the companies will have to fund their current pension plans. Many pensions have been lost when companies go bankrupt and it is then discovered there wasn’t enough money to cover the pension. Even when the pensions are insured, they are capped at yearly benefits of less than 40,000 USD – a lot less than what some pensioners have been promised. Employees with traditional pension plans may see their pensions frozen – no more benefits accrued, or converted into cash-equivalent plans. These employees will also see benefits in the future – adequately funded now. However, these employees will need to take quick action to quickly fund their 401k and IRA plans to replace the over promised pension that was in risk of being reduced when handed over to the government upon a company bankruptcy. The law signing is a reminder to all of us that the future is in our hands. The current Congress hasn’t moved anywhere with saving Social Security, and most companies will offer the improved 401k plans that where signed into law today rather than offering under-funded traditional pension plans. It is up to all of us, employees of this great nation to fund our 401k and retirement accounts as much as we can. |
President signed the