Consumer Agenda for Retirement Security

Initiative #4: Improve traditional and hybrid pension plans

A. Protect earned pension benefits when companies are bought and sold.

Older employees can lose valuable earned benefits, particularly subsidized early retirement benefits, when the company or division they work for is merged into or acquired by another entity, even though they are doing exactly the same work they did before, often at the very same desk in the very same location.  This can reduce an employee’s benefit by as much as 65 percent.  The employee’s benefits should be fully protected in such situations, so long as they continue to work for the new entity and satisfy the conditions for the benefit. 

Learn more about the other initiatives in the Consumer Agenda for Retirement Security.

Initiative 1: Promote a more adequate and secure private retirement income system.
Initiative 2: Empower workers to promote their own retirement security.
Initiative 3: Improve retirement savings plans.
Initiative 4: Improve traditional and hybrid pension plans.
Initiative 5: Make retirement plans fairer for workers and their spouses.

Print the Consumer Agenda for Retirement Security [PDF].