Pension terminated

[Red1]

What is the name of your state?Florida
My department was taken away from the company I worked for (which had a pension plan) by it's parent company and placed in one of the parent's subsiderary companies which doesn't have a pension plan. However we are still working and doing the same work we did for our former company, just without a continued pension. Basically, they just wanted to discontinue our pensions. Is that legal?

 

[Beth3]

When you say "pension plan," do you mean a bonafide defined benefit Plan (one that pays you a monthly income upon retirement based on a formula using # of years worked and annual income), or are you using the term to mean any type of retirement plan?

"Pension Plan" refers to a very specific type of retirement plan.

 

[Red1]

Yes, it was a bonafide, formulated pension plan.

 

[Beth3]

Okay. We're quickly going to get out of my area of knowledge (which is defined contributon plans, not defined benefit plans) but the employer can transfer you to a different company/subsidiary which would end your participation in the pension plan if employees in that company aren't eligible for participation.

Whether you'd be entitled to future pension benefits when you retire based on the time you did work for the other company is something I can't answer. It depends on the "formula" required to receive benefits, which would be outlined in the Plan Document.

If you wish to discuss this further, I'd suggest you contact the federal Department of Labor who are charged with oversight on employer-sponsored/ERISA qualified benefit plans.