Expert: Allen - 8/24/2006

Question
I have just turned 55. I have a pension with a previous company that will pay about $900.00 a month when I turn 65. With all the stories about loosing pensions should I roll over to something else? What are my choices and can I be guaranteed the same payout?

Answer
A  couple of comments:
1. I assume you participated in what is known as a defined benefit pension plan. If this is the case, you can rest easy. Almost all pensions of this type are insured by a government agency - the Pension Benefit Guaranty Corp. In addition, the assets of the pension plan are separate from the assets of your former employer. So even if something happened to the employer, the plan should still be able to pay benefits. And if it couldn't, the government agency would pay them.
2. As far as rollover, you have to check with the plan administrator for the plan. Many plans provide that the only form of payment is a pension. If this is the case, you can not receive a lump sum and roll it over to another plan or an IRA. If your plan did allow rollover, you would have this option.