What's going to happen to my vested retirement?

[Trapshooter]

I worked for National City Bank (NCC) for 12 years before leaving 10 years ago. They had a non-contributory company retirement plan in which I am "vested". I will not be eligible to draw on it for several more years.

Now, NCC is up to their eyeballs in subprime problems and they are in trouble. They are searching for another bank to buy them out. Actually, JP Morgan Chase was supposedly in discussions with NCC prior to the Bear Stearns debacle. Does anyone have any feel for what might happen to my pension in a merger scenario? Does the purchaser pick up the liability for the pensions, or am I screwed?

 

[brewer12345]

Trapshooter, what usually happens is that the purchaser picks up the liability. But even if something dire were to hapen to Nat City, you should be OK. Their recently filed annual report indicates that their pension plan is significantly overfunded.

 

[Brat]

Yah, until the thieves bleed it dry!!!

 

[brewer12345]

Yah, until the thieves bleed it dry!!!

??

Assuming this is an ERISA shielded pension, it would be pretty hard for them to do anything to it. White collar folks aren't generally real eager to go to federal pound-me-in-the-ass prison...

 

[Trapshooter]

Thanks