Don Kaufmann Explains the Dangers of Pension Risk Transfer

Don Kaufman, a director of The Association of BellTel Retirees (a strategic partner of Retirees for Justice), has contributed an excellent explanation of the dangers of pension risk transfer in Next Avenue. His perspective is unique – not only is Don a long-time leader of the Association of BellTel Retirees, he is also one of 41,000 retirees whose pensions were transferred to Prudential in 2012. Verizon’s pension risk transfer deal with Prudential in 2012 impacted 41,000 retirees.

As Don explains in his article, Prudential has thus far met its responsibilities to him. However, other retirees whose pensions are transferred in pension risk transfer deals may not be as fortunate. When an insurer takes over pension liabilities from a defined benefit plan sponsor, retirees lose the protection of the Employee Retirement Income Security Act of 1974 (ERISA) – a piece of federal legislation that Congress passed specifically to protect them.

Click here to read more in Don’s article.