Pension Insurance News

Pension Insurance Plan

(1)

Living long is also a concern and has to be addressed carefully at younger age. The rising trend of nuclear family, advancement of science and medical facility has forced the people to seriously think about the same. Pension plans are getting more and more important in these times of uncertain job security and mid-life career shifts. It is important because you have your earning years to provide yourself with a regular income during your retirement years.

Insurers provide two basic pension plans models, endowment and unit-linked. You final pension corpus will depend on a lot of factors such as administration charges, fund management, market performance and such like. The idea is to choose an insurer and product where you maximize your corpus while paying out minimum in the extraneous charges. To do that, you first need to look at all of them. To that end, we provide you with the list of all insurers with pension plans plus the actual plan details of each plan.

(2)

Whether or not your pension plan is insured will depend on the type of pension plan you have. Subject to certain limitations, the Pension Benefit Guaranty Corporation insures certain benefits under defined benefit pension plans. There is generally no insurance for a defined contribution plan.

Defined benefit pension plans are set up to ensure that employees are taken care of after retirement. Because employees depend on pension plan income, many pension plans are insured so that the pension plan itself is protected from anything that may happen to the business. This is usually done through the government or through private insurers.

ERISA or the Employee Retirement Income Security Act of 1974, created the Pension Benefit Guaranty Corporation in order to ensure that workers' pensions would be safe in the event that a business goes under and/or mismanages pension funds, resulting in the promised pensions not being available to employees. However, the insurance offered through this plan only applies to certain workers and employees, and only to those who have vested defined pension benefit plans. As of 2011, approximately 44 million Americans have plans protected by the Pension Benefit Guaranty Corporation. In other cases, defined benefit pension plans may be insured by the company who is offering the plan. However, the insurance plan must be maintained by the employer in order for the pension plan to stay valid.

It's not legally mandated that every employer provide a pension plan, nor is there a legal mandate that any employer that provides a pension plan for employees has to have it insured. Whenever you contribute to a pension plan, you should make sure before contributing to it from your own earnings that it is indeed insured so that you’re taken care of in your retirement.

If you have concerns about your defined benefit pension plan or any of your legal rights relating to your pension plan, it's always in your best interest to speak to a qualified lawyer.