pension plan termination

Pension plan termination occurs when an employer decides to end a retirement plan for its employees. This can happen for various reasons, such as financial difficulties or changes in company structure. When a plan is terminated, the employer must follow legal procedures to ensure that employees receive the benefits they are owed. This may involve paying out lump-sum amounts or transferring assets to another retirement plan. Employees should receive clear information on how the termination affects their benefits and what options they have moving forward.