Tuesday, May 5, 2009

Pension is frozen, not terminated

Received the following comment this morning on the pension letter that I was getting some comment on yesterday:


Just talked to Mike Ply. (Thanks, anonymous for the phone number, I left my letter at home.)

Nice guy. Very helpful. Answered my questions directly and succinctly.

The plan is NOT being terminated. (It IS being frozen.) This is new paperwork the government requires. The paperwork must outline what COULD happen, not what WILL happen.

The plan stands, he said.

It is continuing to be funded, he said. It is not being terminated, he said.

This is not a termination letter, he said.

He said we can expect the more "normal" 5500 form, etc, in the fall.

From my past knowledge, 81 percent funding isn't the greatest, but as he pointed out with a rueful chuckle, it is better than most of our 4019(k)s are doing.

Hope this helps.Todd Seibt"

Todd is my guru on all things financial, so I think this should put this to rest. Sorry about the folks who now have their pensions frozen. Wonder if the freeze applies to the editors/managers/content directors/etc.?


Anonymous said...

Well it used to be that you could take your money with you when you leave and say roll it over in a IRA or whatever: NO MORE. They did this move to guarantee that most will never see the money and as we all know these people change the rules of the game all the time. When will some folks learn they are NOT to be TRUSTED.

Anonymous said...

This is not new news. Booth papers were told on March 23 the pension was being frozen and 401k contributions would increase.

Jim of L-Town said...

I understand its not new news. So why did they send it to current retirees then?

The pensions of current retirees have been frozen since the day they retired. No need to tell them that, they already knew.

So it begs the question why bother them with news that does not affect them? Maybe it's some kind of legal requirement.

Adman said...


In talking to my financial planner they are required to send this out yearly.

Jim of L-Town said...

Well, then this must be the first year for this required form because this is not the annual notice that I, or anyone else I know has ever received.

I'm inclined to agree with Todd that this is a result of their recent decision to freeze pensions going forward.

Of course, I could be wrong.