The underfunding of pension plans is one of the most serious problems facing union members today. Already there have been huge reductions in the pension pay-outs to retirees in the Airline, Steel and Auto industries. While the little known federal agency, the PBGC (which insures these plans similar to the FDIC) is not so worried over the next few years, it predicts drastic problems further down the line.

 

 

Annuity Rollovers Overview

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In financial parlance, a rollover has two common meanings, one general and the other specific. It can refer to the reinvestment of funds upon the maturity of an asset, such as a CD or a bond. More specifically, it can refer to reinvestment of funds that have been removed from a qualified plan, such as a 401(k). Using either definition, one possible destination for the rolled-over funds is an annuity, a contract in which individuals pay insurance companies in exchange for the promise of lifelong income.

For Actuaries and TPA's

A Quick Outline