PFRDA

How safe is the money in your pension fund? What if the company goes bankrupt? Is there an FDIC-type agency?

to back the money in the pension fund? How many percent of the money can you expect to get?

Public Comments

1. Are you talking about a defined benefit plan or something like a 401(k)? For a defined benefit plan that is taken over it depends on the amount of the assets and liabilities. The government does back it some but you might get like 50% on the dollar. I have heard of some as low as 10 cents. Depending on how well the pension is funded the company failing doesn't necessarily mean the pension fund will fail. Although, often, they do invest in the same company's stock. But now there are some new limitations on that after Enron. And over the coming years they are supposed to be fully funded to cover the earned payouts. There is no insurance for stock losses in a 401(k) if that is what you are talking about. The brokerage failing or the company failing won't effect your stock ownership in the plan, unless you invested in company stock . You are protected against fraud up to $500k.
2. There is the Pension Benefit Guarantee Corporation, an agency of the federal government. What you get back is not as simple as a percentage. There are various limits and caps.