Pro Asset Protection

Attorney Ike Devji

  • Articles
  • Contact
  • Facts and FAQ’s
  • Asset Protection Attorney Ike Devji – Bio
  • Home
  • Off the Record
  • Reputation and Recognition

Is my DEFINED BENEFIT PLAN safe if my employer goes out of business? – Asset Protection

May 16, 2012 by Ike Devji, Asset Protection Lawyer Leave a Comment

If your employer goes out of business, any retirement plan your employer sponsored will be terminated. If the plan is a 401(k) or other defined contribution plan, your benefits are held in trust, apart from your employer’s assets, and you’ll generally be entitled to receive your full account balance in a lump sum. (You can take the cash, or roll your payout into an IRA or another employer’s plan.)

But if your employer sponsors a defined benefit plan, it gets a little more complicated. A defined benefit plan promises to pay you a specific monthly benefit at retirement. While defined benefit plan assets are also held in trust (or insurance contracts), apart from your employer’s assets, whether a particular plan has enough cash to pay promised benefits depends on your employer’s contributions and the plan’s investment earnings and actuarial experience.

When a defined benefit plan is about to terminate, the Pension Benefit Guaranty Corporation (PBGC), a federal agency created specifically to protect employees covered by these plans, is notified. If the plan has enough money to cover all benefits that participants have accrued up to the plan termination date, then the PBGC will permit a “standard termination,” and your employer will either purchase an annuity from an insurance company (which will provide lifetime benefits when you retire) or, if your plan permits, let you choose a lump-sum equivalent.

However, if the plan doesn’t have enough money to pay all promised benefits earned up until plan termination (that is, the plan is “underfunded”), the PBGC will take over the plan as trustee in a “distress termination,” and assume the obligation to pay basic plan benefits up to legal limits. For plans ending in 2012, the maximum annual benefit (payable as a single life annuity) is $55,840 for a worker who retires at age 65. If you begin receiving payments before age 65, or if your pension includes benefits for a survivor or other beneficiary, or if your plan was adopted (or amended to increase benefits) within five years of the termination, the maximum amount is lower. According to the PBGC, only 16% of retirees in recent years have seen their benefit reduced because of the annual dollar limits.

 My thanks to my friend Mike Stolp, Managing Member CFO Financial Advisor Network, for sharing this info and alowing us to use it here.  Contact Mike and his advsiory team at 800-283-2468   or learn more about him here: cfofa.com

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to share on Tumblr (Opens in new window)

Filed Under: Bankruptcy, business legal planning, CEO, closely held business, defined benefit plans, doctor sued, family business, financial advisors, FINANCIAL ISSUES FOR DOCTORS, financial literacy, high net worth, investment exposure, Legal Strategies, liability Tagged With: Asset Protection, ceo, cfo, CFO Financial Advisor Network, coo, defined benefit plan, executive compensation, Ike Devji, income protection, mike stolp

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

See Ike’s Work In Action

· Ike Devji on Acrimoney.com
· Ike Devji on CFO ADVISORS
· Ike Devji on Infosec Island
· Ike Devji on Risk and Threat Management

Money Matters Interview

Recent Posts

  • The Business Roundtable Podcast: Asset Protection
  • The Risks of Doing Business With Family Members
  • Campaign Contributions: What Business Owners Need to Know
  • Recession Asset Protection – Is My Bank Safe?
  • Asset Protection for Pain Management Doctors and Anesthesiologists

Categories

  • 2012 Economy (3)
  • 2013 Economy (3)
  • 2020 Recession (1)
  • 529 and College Savings Plans (1)
  • abusive tax schemes (13)
  • APT (3)
  • Arizona (19)
  • arizona anti-deficiency statutes (5)
  • Arizona Asset Protection (33)
  • arizona bankruptcy (4)
  • arizona economy (13)
  • Arizona Estate Planning (11)
  • arizona forclosure (8)
  • arizona real esate (12)
  • Asset Protection (174)
  • Asset Protection Education (16)
  • Asset Protection for Doctors (36)
  • Asset Protection for Your Home (7)
  • Asset Protection Fraud and Failures (22)
  • asset protection law (25)
  • asset protection strategies (42)
  • asset protection trusts (33)
  • Baby Boomers (5)
  • Banking and Bank Solvency (5)
  • Bankruptcy (8)
  • Best Money Market rates (1)
  • brokers (1)
  • Business Asset Protection (3)
  • business law (3)
  • business legal planning (72)
  • business owner and entrepreneur (15)
  • Business Owners (28)
  • business survival (48)
  • business valuation (6)
  • buy sell agreement (5)
  • captive insurance company (8)
  • Cars and Automobile Liability (4)
  • Cash Alernatives (2)
  • CEO (27)
  • children (8)
  • chiropractors (35)
  • CIO (1)
  • closely held business (30)
  • commercial real estate (8)
  • Coronavirus (2)
  • cpa (20)
  • creditor negotiation (4)
  • creditor protected cash alternatives (5)
  • Crisis Management Planning (7)
  • CTO (1)
  • DAPT (3)
  • debt (4)
  • deficiency judgment (2)
  • defined benefit plans (2)
  • dentists (57)
  • Director and Officer Liability (10)
  • disability insurance (2)
  • Divorce (5)
  • doctor sued (44)
  • Doctors (54)
  • Domestic Asset Protection Trusts (2)
  • Due Dilligence (11)
  • economy (9)
  • employee social media usage (3)
  • Employment law (25)
  • Entrepreneurs (5)
  • equity (1)
  • ESTATE MANAGEMENT (2)
  • estate planning (29)
  • estate tax (12)
  • estate taxes (3)
  • Expatriation (1)
  • face book (3)
  • family business (19)
  • Family Legal Planning (7)
  • family liability (11)
  • family limited partnership (4)
  • Family Office (8)
  • FAMILY OFFICE ISSUES (6)
  • FDIC Insurance Limits (2)
  • finacial advisors (7)
  • Finance (12)
  • financial advisors (23)
  • FINANCIAL ISSUES FOR DOCTORS (47)
  • financial literacy (56)
  • financing (6)
  • firearms (5)
  • forclosure (2)
  • foreclosure (3)
  • foreign bank accounts (7)
  • fraud (18)
  • fraudulent conveyance (3)
  • funding (3)
  • Geri Custer (1)
  • gifting (1)
  • Gifting – Wealth Transfer (4)
  • Greg George (5)
  • GTI ADVISORS (5)
  • Gun trusts (1)
  • guns (7)
  • HEALTH CARE LAW (6)
  • high net worth (17)
  • HIPPA violations (1)
  • homeowner's liability (13)
  • HR (3)
  • IAPT (2)
  • id theft (4)
  • Ike Devji (100)
  • Ike Devji – Asset Protection Expert (5)
  • ILIT (2)
  • information security (5)
  • intangible assets (3)
  • intellectual property (1)
  • investing (12)
  • investment exposure (14)
  • IRA creditor protection (1)
  • IRA Trusts (1)
  • Irrevocable Life Insurance Trust (3)
  • IRS (7)
  • Jeff Christenson (4)
  • Jumbo CD Rates (1)
  • kids (6)
  • lawsuit awards (23)
  • lawyers (8)
  • Leadership & Management (12)
  • leading wealth and legal advisors (2)
  • legal documents and records (3)
  • Legal Strategies (19)
  • liability (46)
  • liability insurance (35)
  • Life Insurance (13)
  • life Insurance conversions (1)
  • LIFE INSURANCE CREDITOR PROTECTION (2)
  • Life Insurnace Conversions (2)
  • Limited Liability Companies (2)
  • Limited Partnerships and FLPs (1)
  • linkedIn (1)
  • LLC Asset Protection (3)
  • LLC Myths (2)
  • Loan default (4)
  • Lotzer Law Group (1)
  • malpractice (14)
  • malpractice insurance (2)
  • marketing and reputataion management (2)
  • Marriage and Family (2)
  • Medical Marijuana (1)
  • Medical Practice Management (23)
  • medical practice mangement (31)
  • Medical Practice Risk Management (14)
  • mexican real estate (1)
  • Mortgage (1)
  • Municipal Bonds (2)
  • Nevada (1)
  • offshore (16)
  • offshore banking (9)
  • offshore trusts (13)
  • parenting (7)
  • partnerships (2)
  • personal finance (2)
  • personal injury (8)
  • personal security (9)
  • physicians (41)
  • physicians personal finance (3)
  • privacy and identity (2)
  • professional athletes (27)
  • professional entertainers (17)
  • property insurance (7)
  • rachel weiss (5)
  • Raisng Capital and Funding Your Business (1)
  • real estate investing (14)
  • recession (12)
  • recession lawsuits (13)
  • recession survival (32)
  • Reputation and Recognition (1)
  • reputation management (1)
  • Retirement Plan Creditor Protection (2)
  • retirement plan funding (2)
  • Richard Arnold (1)
  • risk management (11)
  • scams (13)
  • Scottsdale (1)
  • Sean Shepherd (3)
  • SEC (1)
  • secret bank accounts (6)
  • SECURITY (5)
  • shelf corporations (1)
  • small business (3)
  • social media (5)
  • start-ups (7)
  • startup (5)
  • Strategic Default (4)
  • Succession and Transition Planning (5)
  • Surgeons and Surgical Centers (5)
  • tax deductions (19)
  • tax fraud (7)
  • taxation (17)
  • taxes (23)
  • THE VAULT (2)
  • Trisha Lotzer (1)
  • trusts (4)
  • twitter (1)
  • Uncategorized (52)
  • up front fees (1)
  • Urgent Care Centers (1)
  • vacant real estate liability (4)
  • venture capital (6)
  • wealth transfer (5)
  • Wealth Transfer Strategies (13)
  • women & money (8)
  • Workplace Violence (2)
  • worth magazine (4)

Copyright © 2021 · Dynamik-Gen on Genesis Framework · WordPress · Log in