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Thelawman2, Lawyer
Category: Employment Law
Satisfied Customers: 1612
Experience:  Attorney-at-Law
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I worked as a Software Engineer for St. Regis Paper Company,

Customer Question

I worked as a Software Engineer for St. Regis Paper Company, starting in April of 1980, covered by their retirement pension plan. St. Regis Paper Company was acquired by Champion Paper Company and during a reorganization a group of former St. Regis employees were let go due to the downsizing in June of 1987. Most of them were able to cash out their pension plans, management determined mine was too large, so I was only able to freeze my pension. International Paper at some point acquired Champion Paper and is now in control of my pension. I will turn 65 in January and International Paper is offering a single life annuity of $130.80 per month starting on 2/1/2017. This seems very small, so my question is how do I find out if I am being cheated?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Thelawman2 replied 1 year ago.

An employer can’t legally take away benefits workers have already earned. The problem is, traditional pensions are back-loaded, with little earned in an employee’s early years and a lot in the last years before retirement. So older, long-tenured workers are big losers in a freeze.

What you need to do is determine what your benefits were when your pension was freezed. You then need to compare that amount with the annuity being offered to you.

You might want to hire a local CPA who can quickly do the analysis for you and determine whether it is a good deal or not. If not, then you can tell the company that you want the pension that you are entitled to and they have to agree or else can be sued.