November 2nd, 2009 by Reed Allmand 
If your employer files for bankruptcy your retirement plan could be at risk. Here’s what you need to know:
- If your employer files Chapter 7 bankruptcy, which is a total liquidation, your pension plan will be automatically terminated.
- Pension plans which are terminated in Chapter 7 bankruptcy are insured by the Pension Benefit Guaranty Corporation; but 401k plans are not insured.
- If your employer files Chapter 11 bankruptcy, the retirement plans will most likely be affected by their restructuring efforts. Both retirees and employees usually retain counsel to represent their interests during the bankruptcy.
How To Protect Yourself
- Find out if your pension plan has been terminated.
- Find out who the pension plan administrator is during the bankruptcy.
- File a claim with the bankruptcy court. You may want to consult with an attorney to do this.
- Contact Employee Benefit Security Administration, EBSA at www.askebsa.dol.gov or 1-866-444-EBSA (3272) to get help.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
View all posts by Reed AllmandSubscribe
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