How Do Pensions Work If The Company Is Acquired?
October 21, 2022 6:12 PM Subscribe
Let's say a somewhat large Company A (with a pension plan for retired employees) is acquired by some other Company B -- is there any reason for Company B to continue to honor the pension plan? A quick search on the terms of the pension indicates Company A reserves the right to change the plan at any time for any reason. Does this basically guarantee that Company B will end the pension plan as soon as it gets around to it?
I've seen there's a government backed agency that apparently collects dead pension plans, but the pension plan I'm concerned about isn't "dead" yet. Is there any regulation that prevents a company from draining the funds and killing off the pension? I assume there is? (These companies are US-based, so answers in American, please.)
I've seen there's a government backed agency that apparently collects dead pension plans, but the pension plan I'm concerned about isn't "dead" yet. Is there any regulation that prevents a company from draining the funds and killing off the pension? I assume there is? (These companies are US-based, so answers in American, please.)
Response by poster: oh, I guess I could have asked my question here: https://www.dol.gov/agencies/ebsa/about-ebsa/ask-a-question/ask-ebsa
posted by mhh5 at 12:00 AM on October 22, 2022 [1 favorite]
posted by mhh5 at 12:00 AM on October 22, 2022 [1 favorite]
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posted by michaelh at 6:24 PM on October 21, 2022 [8 favorites]