Monday, May 11, 2009

American companies are reducing their pension programs

The number of American companies that have frozen traditional pension programs has increased dramatically since the beginning of this year, and this trend is likely to continue, as companies reduce investment in decreasing profits. At least 16 companies since the beginning of the year announced the shutdown of pension plans from the beginning of this year, for comparison for the entire year 2008 their number was 18.
Last week, Wells Fargo told that their pension plans will stop the accumulation of 1 July. When frozen pension program, employees receive the money that they froze. Older employees hardest hit by such decisions, because they have less time for recovery, said Nancy Ho, the Speaker of the Center for the Protection of the rights of pensioners. More and more companies will close the pension program, Congress has, at least temporarily will not weaken the rules for the funds, said Dan Batlle, director of Tax Policy National Association of Manufacturers. "When your funding commitments tripled, and you do not have cash, and you do not get breaks from Congress, you must make a difficult choice," - she said.

No comments: