Re: Pension Statements - IBM interpretation of first court judgement.
Posted by:
dave (IP Logged)
Date: 18 February 2014 03:32PM
I don't think it's worthwhile spelling out exactly what happens when a plan is terminated, but in the IBM case (at least as it was around 2005), the Trustee could have:
1. purchased annuities for the members (immediate for retirees and deferred for exmployees)
2. transferred the fund to other schemes (individual or group)
3. some combination of 1 and 2
There are/were rules governing the priority of the various claimants (again pensioners, deferreds, employees etc).
Termination is quite different to closure of course - as Mike said above, the C Plan was closed to new entrants before 2000 and then closed to accruals in 2009.