In late December, NewPage Corp., one of the largest U.S. producers of coated-paper, left bankruptcy with both of its pension plans going.
NewPage's achievement follows other companies that successfully reorganize their finances without gutting the retirement security of current and former employees. The company's two plans support the retirement incomes of more than 13,000 people.
There's no better way to have a secure retirement future than a lifetime income that you can't outspend. That's why we applaud companies that find a way to maintain their plans, even through bankruptcy.
We always take an active role in bankruptcies to help plans stay open and pay benefits. In fiscal year 2012, those efforts kept more than $12 billion in unfunded pension liabilities off our books and helped nearly 200,000 people keep the benefits they earned.
NewPage of Miamisburg, Ohio, sought bankruptcy protection in September 2011, with $3.4 billion in assets and $4.2 billion in debt. The company has operations in Wisconsin, Minnesota, Michigan, Kentucky, Maryland and Maine.
If you receive a direct deposit payment from PBGC, your funds will be deposited on January 2, 2013, one day after the New Year. If you receive a paper check, and you have not received your paper check by January 7, call us at 1-800-400-7242 or visit our Contact Us page for other contact options.
Want to receive future payments more quickly? Remember, PBGC offers direct deposit. It's the most secure and fastest way to receive your payment, and your funds are always available on payday — even if the weather's bad, the post office is closed, or you're out of town. The future electronic direct deposit dates are already mapped out!
To learn more or sign up for direct deposit, call 1-800-400-7242 or visit MyPBA.
One of the most important ways PBGC protects retirement security is by working to preserve pensions, not just waiting until they fail. New Chief of Negotiations and Restructuring Sanford "Sandy" Rich will lead that effort.
Rich was selected to lead this department because he knows the inner workings of distressed trading, corporate restructuring, and investment banking; he has more than two decades of experience in the industry.
Now that we've given you a snippet of information about Sandy, allow him to introduce himself.
Check out his introductory video on YouTube.
Whether retirement is knocking on your door or decades away, you should have a financial plan in place to help you reach that milestone. Bloomberg Business News published an article that debunks some of the myths about retirement. As the article states, "We're living increasingly in a "yoyo" economy -- short for "you're on your own."
According to the article, here are some of the most common myths about retirement:
MYTH NO. 1: It's OK to postpone saving for retirement until other needs are taken care of.
MYTH NO. 2: Medicare will take care of almost all your health care needs.
MYTH NO. 3: You'll need far less income in retirement to maintain the same standard of living.
MYTH NO. 4: You can claim Social Security early and still get full benefits later.
MYTH NO. 5: You should rely heavily on bonds rather than stocks as you get older.
MYTH NO. 6: Any retirement target-date fund will allow you to "set it and forget it."
MYTH NO. 7: You'll be able to make up a savings shortfall by retiring later or working part-time in retirement.
Read the full article, "7 retirement planning myths debunked."