Pension types
09-22-2006 | 07:25 AM
#1
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Gets Weekends Off
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From: Soon to be Ex Dash-Trash
Pension types
I know there used to be a thread about this but I just can't find it. Could someone please explain to me what the difference between an A fund and a B fund is? Just curious.
09-22-2006 | 08:09 AM
#2
APC co-founder
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From: B777
09-22-2006 | 08:42 AM
#3
With The Resistance
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From: Burning the Agitprop of the Apparat
An A fund is an unsecured promise to pay an unspecified(due to contract changes, bankruptcy, etc.) sum at an unspecified time(variations in contract. age at retirement, bankruptcy, etc.).
A B fund is paid directly into an account with your name on it on a monthly basis(or more) and is immediately yours. It stays yours despite contract changes, bankruptcy, retirement age, or any other glitch.
People have found over the last decade that no matter how big a company is there is always a possibility of an A fund evaporating before you get anything. See Airlines, GM, Ford, IBM and many others.
A B fund is paid directly into an account with your name on it on a monthly basis(or more) and is immediately yours. It stays yours despite contract changes, bankruptcy, retirement age, or any other glitch.
People have found over the last decade that no matter how big a company is there is always a possibility of an A fund evaporating before you get anything. See Airlines, GM, Ford, IBM and many others.
09-24-2006 | 03:23 AM
#5
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From: Retired 121 pilot
A B-Plan is a defined contribution pension. Your employer puts a specific amount of money into some sort of investment program, usually once a month. You own it.
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