Moreover, certain kinds of companies are almost always under-funded. Unfortunately, there is no simple rule, pension experts say. Each company is supposed to release details of the financial status of its pension plan to all covered employees once a year. And if your company is publicly traded, you can check its financial status through quarterly and annual reports filed with the Securities and Exchange Commission. If both your company and its pension plan are in fact on the rocks, then there are two things you should consider.
PBGC insurance is funded by a per capita tax adjusted for the riskiness of a company's pension plan.
In these plans, you typically maintain an account under your own name and the amount of money you have in retirement simply depends on how fast your account grows. Despite the PBGC insurance, though, part of your potential or existing pension payments might still be at risk. That's because there are some limits to PBGC's insurance of private pensions. Also exempt are pension subsidies that companies offer to entice workers to take early retirement. Bridge benefits are what your company pays you in lieu of Social Security until you qualify for the real thing at age 62.