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Fluctuations
in the stock market, unstable economic trends, and stories about
corrupt CEO’s and pension funds is enough to make anyone nervous
about their retirement. Over the last several years it has not been
uncommon for someone to learn that their pension has disappeared
overnight because of actions taken by a member of their company.
How
Can This Happen?
After
a lifetime of service, an employee that is ready to retire all of a
sudden finds out that a member of management - be it the CEO or CFO -
has engaged in investment malpractice with the
company's pension funds and the security of a pension is no
longer available. Facing the prospect of having to retire on only a
government benefit check is unacceptable, so many of these people are
forced to continue working or resort to selling personal property or
belongings to afford retirement.
These
employees, however, can take action against the company and/or the
individual that caused the loss of the pension. There are legal
obligations that the company must meet when they offer a pension and
the employee agrees to enter into the pension plan.
An
experienced attorney can help the individual by determining
responsibility for the loss of pension funds and demanding
compensation for the actions. The attorney may sue the company, the
individual responsible, the CEO for negligence, and even the pension
plan holder if it is determined that they should have suspected there
was a problem with the plan. The individual filing the suit may also
have special rights under the Whistleblowers Act when reporting that
there are fraudulent actions taking place with the company pension
fund.
How
To Protect Yourself
When
a company offers a pension plan, normally employees will participate
and take advantage of the program. Some in American feel that social
security government benefits are not enough to live on, and that they
may not be around much longer. If that is the case taking advantage
of a plan your company provides is one way to prepare for the future.
However,
there is always a risk with this type of plan. You may move to
another job, you may become unable to participate, or your company
may in fact misappropriate the funds. The best way to protect
yourself from any of these issues is to make sure that you have a
“Plan B” in effect at all times.
Take
the time to set up a personal retirement account on your own that is
separate from your company pension. Invest and save on your own, with
the help of a financial adviser if necessary, to ensure that if
something does go wrong with your company pension, you will have
something else to fall back on in retirement. If nothing does go
wrong, it will be more money available for you to enjoy.
In
the end, employees that find that their company has committed an act
that endangers or nullifies their pension, there is legal action that
can be taken to recover what is owed. It will take some time and the
assistance of a professional lawyer, but it can be accomplished.
Jeanetta
Champion, a concerned citizen, contributes this article wanting
Americans to think of the future and prepare. Page Perry LLC
specializes in protecting people from investment
malpractice.
They have comprehensive experience in many areas of law, but
they specialize in fraud and breach of fiduciary duty with an
emphasis on investments. The firm has helped dozens of investors
recoup more than $85 million from 12 different firms since January
2005.