Another company just cut its pension plan — what to do if it happens to you

Jul 13th, 2018

Avery Dennison AVY, -0.70%  is the latest example of a persistent trend: the death of the pension plan.

The labeling and packaging company said on Wednesday it was terminating its pension plan, effective Sept. 28, eight years after first freezing the program. It also said there would be no change in benefits for the 11,200 current participants, although the plan is currently underfunded by about $240 million.

What does that mean for plan participants right now? The elimination of the plan means current participants will have to choose between receiving their benefit now as a lump-sum payment or as a continuing monthly payment, said Edward Snyder, a financial adviser at Oaktree Financial Advisors in Carmel, Ind. “It’s a good time to revisit your financial plan to see how the different pension options will impact your plans and retirement income

Read more at Marketwatch

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