Could you lose this kind of pension?

[TwixVoy]

Can anyone here who knows a little more about pensions than I do answer this question?

I don't know exactly what this "type" of pension is called... but basically my employer contributes money every quarter in to an account, and they progressively increase the amount they contribute over time. Then whenever I leave the company (or retire) I can take it. They say I am 100% vested.

My question is - is it possible for me to lose this retirement money? If they company goes out of business do I lose it? Can they take it away for any other reason?

I just want to know so I can better refine my retirement plans should I possibly no longer be able to count on that money....

[crispini]

1. You really do have to know what kind of account it is.

There's "defined benefit" where the employer agrees to pay out money after retirement. These, you definitely can lose if the company goes out of business and tosses it to the government who will pay you very little (see also: the airlines).

Then there's "defined contribution" where there is a stipulated amount paid in. This sounds like yours, but the real question is, where IS that money invested? If they're investing in bonds or some such it won't keep pace with inflation.

[TwixVoy]

2. Hmmm...

Honestly I'm not sure. I know it IS invested in something because I have interest gains on it. Also it is in the same place my 401K is in.... as in I can "see" it on my employers retirement web site. It shows me how much they have put in, how much interest it has gained, but not much more.

Unlike my 401K I don't seem to have any say on what it is invested in. Don't even know what they have it invested in....

[crispini]

4. Sounds like it's worth a call to your HR office to ask.

Good luck & happy investing. :D

[flvegan]

3. Exactly.

Defined contribution being an IRA or 401(k) plan, which the OP should have been able to choose which securities his/her funds were to be directed towards.

[loveable liberal]

5. ERISA laws have been weakened. I dont trust my former ...

employer so I'm trying to remove the funds to invest them myself. I would advise you to speak with a financial advisor to see if you have access to them. People from Enron, Verizon and a host of other companies lost their pensions I believe.