Pension de-risking
Follow-up
I have a pension from DSM. Currently the pension is guaranteed by the PBGC.
The company plans to terminate the plan by year end. They plan to turn it over to an insurance company (yet to be determined). When that is done the guarantee from PBGC stops. There is some protection from the Illinois Life Health Insurance Guarantee Association (ILHIGA.ORG).
However I don’t believe the guarantee is nearly as good as the PBGC.
Should I be concerned? How good is the ILHIGA guarantee?
Best regards
Terry Says
You’re correct that state insurance guarantee funds don’t have the same level of guaranty as the PBGC, which has an implicit guarantee of the Federal government. In reality, neither is “full of money” to pay off those guarantees, but at least the Federal government can “print” the money!
When you find out the insurance company that is taking over your pension, I suggest you go to www.StantheAnnuityMan.com and schedule a free conference w Stan. He may recommend rolling into a different company for an immediate annuity. You can trust him — there are no big commissions in immediate annuities so you want to make sure you’re with a strong company that will pay out over your lifetime.
