[Beaver101]

^ Has to be a private company and they, the employer, can make whatever changes they want to their pension plan (particularly a DB one) as they see fit (aka most cost effective to the point of penny-pinching) since they own and sponsors it. I.e. the employer doesn't care whether you, the employee, thinks it's a bad idea, not worth your while staying there or worry until you get warts working there.

 

[mmlucki99]

^ Has to be a private company and they, the employer, can make whatever changes they want to their pension plan (particularly a DB one) as they see fit (aka most cost effective to the point of penny-pinching) since they own and sponsors it. I.e. the employer doesn't care whether you, the employee, thinks it's a bad idea, not worth your while staying there or worry until you get warts working there.

Thank you.
For a not-for-profit company, has 2 plans, old plan has index, the new plan for someone got hired later days does not have index. With the current economy, I just hope the old plan will not be effected.

 

[Beaver101]

Thank you.
For a not-for-profit company, has 2 plans, old plan has index, the new plan for someone got hired later days does not have index. With the current economy, I just hope the old plan will not be effected.

... since you're aware of this "change", then I presume you would have a plan document telling you so in which case you don't need to hope on this provisional grandfathering.

All changes to a pension plan has to go through the pension authority of which it has registered with (Provincial for private companies and not for profit I believe, Crown goes to the Fed).

 

[kcowan]

Yes the company was private non-union, and the changes were made just before a major downsizing. Existing retirees were grandfathered. Subsequently, they offered the option of converting to DC.

 

[Gator13]

On the topic of DB pensions, does anyone know what happens if a private company cannot afford to continue funding an IPP or the business is sold? (With the IPP being for a single member)

 

[kcowan]

The pension recipients get in line behind other creditors to settle for cents on the dollar. I think Nortel got 70 cents.