Can Pension Payments Be Stopped?

Employers can end a pension plan through a process called "plan termination." There are two ways an employer can terminate its pension plan. The employer can end the plan in a standard termination but only after showing PBGC

PBGC

Overview. PBGC insures most private-sector (i.e., non-governmental) defined benefit pension plans. When a PBGC-covered single-employer plan fails, PBGC pays participants their earned benefits up to certain legal limits.

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that the plan has enough money to pay all benefits owed to participants.

Do pension payments ever stop?

Key Takeaways. Pension payments are made for the rest of your life, no matter how long you live, and can possibly continue after death with your spouse. Lump-sum payments give you more control over your money, allowing you the flexibility of spending it or investing it when and how you see fit.

Are pensions guaranteed by the government?

A government agency called the Pension Benefit Guaranty Corporation (PBGC) provides pension insurance. This can protect your pension benefits and make sure you have a steady income after you retire. The PBGC insures the benefits of 35 million Americans. It doesn't receive money through general taxes.