Kodak also ends their pension plans, what are the best companies that still provide this retirement?

We all know that Eastman Kodak (Kodk) is in trouble. The iconic photography brand applied for bankruptcy in 2012, and has spent the past 13 years in throwing business and performing a series of financial actions to maintain matters.

Kodak’s latest victim: 97 -year -old pension plan.

The company is desperately tries to increase its value of $ 477 million. To clear the clean menu, Kodak decided to end the pension plan in the coming months. The apostasy will generate $ 500 million in cash after the company sells investment assets, which must be sufficient to ensure Kodak remains standing on its feet.

But what about 35,000 employees of the pension scheme?

This is where it becomes somewhat complicated.

Participants in the current plan will have to choose between the settlement through installments or take a lump sum over their balance. At this point, retirees will not see a change in the value of the benefits they promised. Meanwhile, Kodak is still trying to determine the type of pension that you will present to the new and current employees who move forward.

Regardless of the type of plan that Kodak brings, this step is undoubtedly another nail in the coffin of the traditional pension plan.

To explain the reason, let’s pump brakes and talk about pension plans. We will also cover companies that still provide pensions, and why Kodak moves to end their plan to all pension schools.

The retirement plan is a popular pension benefit. After registering for the pension plan, you or the employer begins to contribute to the money in an investment fund that grows over time. This ensures that you are still getting a regular source of income after stopping work.

There are a lot of different pension products available on the market to help plan retirement for the future. But when people talk about pensions, they usually refer to the “specific benefits plan”.

The specific benefits plan sees that an employer is investing in the retirement fund on your behalf. You are then the content of a fixed annual income after stopping work. It also includes the advantages of the survivors so that your loved ones continue to receive payments after your death.

This fixed income rate has always been a very attractive choice for workers. Therefore, major companies use specific benefits as an easy recruitment tool for decades.

Why are they wonderful for workers?

It does not matter how much money you allocate throughout your working life does not matter. You can relax while knowing the amount of money you will get from your pension. Your benefits are usually paid in one cut, whether cash or pensions.

Best of all, the employer gives all the risks by setting money aside and ensuring a specific income, regardless of the performance of the pension.

Unfortunately for workers, these plans are increasingly disappearing from the companies of companies. The United States’ Labor Statistics Office indicates that only about 15 % of private sector employees now have a traditional traditional pension plan.

Few companies are now ready to face heavy and long -term financial risks associated with specific benefits plans. Retirement obligations also follow along with regulatory requirements and appear on the financial statements of companies-which then continue to influence the company’s evaluation.

As a result, many American companies have turned into “specific” pension plans as a more sustainable alternative.

The specific contribution plan is a retirement product where you and the employer contribute in specific quantities in the future retirement fund. After retirement, your income depends on the accumulated value of your contributions and the performance of investing in your box.

This means that your retirement income is unstable. As a result, you will face higher risk levels with a specific joint stock plan from the traditional specific benefits plan.

The most popular type of the specified contribution plan is 401K.

A 401K enables you to make pre -tax contributions, which reduces your tax income during your working life. Some employers also undertake to match your contributions, which provide a higher rate of retirement income for the future.

The specified alternative contribution plans include:

Some employers also offer profit sharing plans. These plans see your employer offering the contributions of estimated boxes linked to the company’s profits.

Specified contribution plans are still a smart way to save the future, and it is definitely better than nothing. But if you are looking for more certainty and less dangerous, the traditional retirement plan is still the best option.

Fortunately, the feature plans specified on the Dodo road have not yet been going. There are still some major international companies operating in the United States that offer traditional retirement plans.

This includes:

• Pfiz (PFE)

• Merck & Company (MRK)

• John Deren (The)

• PRUDENTial (Pru)

• Ford (f)

• May clinic

• AT & T (T)

• Charles Schwab (SchW)

Other big names such as JPMorgan Chase (JPM) and Boeing (B) offer specific benefits plans that are still running but closed to new employees.

This list is not in any way. But it must give you an idea of the number of adult employees who still offer specific interest plans. Traditional pension plans are no longer the base, but they are there.

Do not work in Kodak? You are likely not very worried about the dismantling of the old retirement scheme in Kodak.

However, you may want to pay more attention. There is a very real opportunity, and this will all affect us in the long run.

It goes without saying that the major companies will see Kodak’s move with great interest. If Kodak succeeds in carrying out their debts and paying them without destroying the lives of 35,000 participants, it creates a plan for other companies that attend costly and expensive traditional retirement plans.

As a result, the list of large companies that still provide specific interest plans in the shrinkage in 2026 may begin. The transition from traditional pensions ultimately means higher levels of risk and a shrinking source of guaranteed income for large areas of American retirement schools.

Translation: Keep your ears on the ground and make sure that you understand exactly the current pension arrangements. There can be a change in the horizon, and you have to be aware of the retirement options available to you.

On the date of publication, Nash Riggins did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com