Company is sold, can the new company stop your pension?

UPDATED: Sep 30, 2022

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Company is sold, can the new company stop your pension?

My father is 86 yrs of age, he recently
received a letter from the new company
attorney, which stated he will no longer
be receiving pension payments. Can a
company do this?

Asked on April 17, 2017 under Employment Labor Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

This is a complicated issue; your father needs to bring not just this letter, but all the documentation relationg to the pension, to an attorney--ideall one with pension-plan experience; or if you cannot locate such, a more general employment law attorney would be a good choice--to understand his rights. There answer will vary according to the type of plan and the terms of the pension, and also according to how the company was sold (e.g. if it was an LLC or corporation, was the LLC or corporate structure purchased, or did the buyer just acquire the assets?), since in some sales, the new owner would not acquire any pension obligation, but rather it would remain with old company or the entity it had previously set up for the pension. This is a highly technical area, and you need an attorney to go over everything in detail with you.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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