Personal Finance: Another blow to private pension plans

Personal Finance: Another blow to private pension plans

The American industrial icon General Electric recently made an ominous announcement: it is freezing its corporate pension plan, effectively shutting off any future accrual of benefits for the 20,000 workers covered by the plan (the pool had already been closed to new hires since 2012). Like many corporations, GE had underfunded the plan over time and today finds itself $8 billion behind in pension contributions, a gap which must eventually be closed.

So what happens if your pension plan closes up shop? It depends on whether the employer lives or dies.

Assuming that the firm avoids bankruptcy, it will likely seek […]

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