Asked by Paulmeech  |  Submitted January 27, 2017

I'm retired and collecting Social Security and a company pension from Kmart, now Sears Holding. What happens to my company pension if the company goes under?

I was 100% vested years ago. I've been collecting my company pension for over 3 years now.

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  Answers  |  2

January 27, 2017

Hi. There is something called Pension Guarantee Fund, which may provide you with the same or reduced pension if your company plan is discontinued, or fails. The company must give you 60 days notice of the failure of the plan. Then the PGIF comes into existence. Most likely, if your plan fails you will get a reduced benefit.
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Paulmeech | 01.28.17 @ 00:14

I thought the pension was separate from the business. They closed it in 1996 and went to IRA's. So, if SHC goes under tomorrow, I will be covered by PGIF and get a reduced pension. Thank you for your response.

$commenter.renderDisplayableName() | 09.15.19 @ 09:39

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January 31, 2017

Never heard of the Pension Benefit Guaranty Corporation (PBGC)? Read this MoneyTips article to learn how this government agency protects your retirement finances.

$commenter.renderDisplayableName() | 09.15.19 @ 09:39

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