Wednesday, October 30, 2013

Fannie Mae, Freddie Mac eliminating pension plans

When Will the Federal Government Join Them?

Fannie Mae, Freddie Mac eliminating pension plans starting Dec. 31 - The Washington Post: "Fannie and Freddie join a long list of companies seeking to limit the amount of money they have to set aside for future retirees. The Pension Benefit Guaranty Corp., the federal agency that insures private-sector pensions, has said that the number of plans it backs has dropped from 112,208 in 1985 to 25,600 in 2011. The changes at Fannie and Freddie affect employees hired before Jan. 1, 2012, according to a five-page document addressing who is eligible and how the transition will work at Freddie Mac. Employees who leave the company before the end of the year with less than five years of service will forfeit the benefits they earned under the pension plan. The document described a “Thrift/401(k) Savings Plan & New Transitional Retirement Savings Plan” for Freddie Mac employees."


No comments: