Is there insurance on government plans?
- What's a defined benefit plan?
- Can I decide how my money is invested?
- What's the difference between a defined benefit plan and a defined contribution plan?
- What happens when I retire?
- Exactly how much will I get when I retire?
- Am I eligible for a defined benefit plan?
- Just how common are defined benefit plans?
- What if I work for the government?
- What are the advantages of a defined benefit plan?
- What are the disadvantages of a defined benefit plan?
- Can I tap my money early?
- Can I count on the money to be there when I need it?
- Will PBGC payouts be as big as I was counting on?
- Is there insurance on government plans?
- How can I make sure my pension is covered by the PBGC?
Defined benefit plans for public employees have no PBGC backstop. If there's a shortfall, you're at the mercy of your state or municipality to figure out a way to come up with more money. That's likely to mean higher taxes of some sort - and it would probably cut the value of your benefit anyway.
