Yeah, what the last guy said. Word up
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The Plan constitutes an unsecured promise by a Participating Employer to pay benefits in the
future. Participants in the Plan shall have the status of general unsecured creditors of the
Company or the Adopting Employer, as applicable. Each Participating Employer shall be solely
responsible for payment of the benefits of its employees and their beneficiaries. The Plan is
unfunded for Federal tax purposes and is intended to be an unfunded arrangement for eligible
employees who are part of a select group of management or highly compensated employees of
the Employer within the meaning of Sections 201(2), 301(a)(3) and 401(a)(l) of ERISA. Any
amounts set aside to defray the liabilities assumed by the Company or an Adopting Employer
will remain the general assets of the Company or the Adopting Employer and shall remain
subject to the claims of the Company's or the Adopting Employer's creditors until such amounts
are distributed to the Participants.
Match is protected. Deferred comp - u are an unsecured creditor. Just FYI - mgmt. was cashed out in conjunction with the WRD deal.
Your contributions are not protected from insolvency since they're more or less considered to be working capital. The only protection offered is in the case of a buyout.
One of the MANY (many...many...many) reasons I quit was to do avoid loosing my contributions. I got my contributions, after taxes, easily enough. The company contributions were a pain to get. They went to an outfit named Computershare in form of CHK stock, after being 'taxed.' That company then applies a decent fee when I sold those shares.
Your deferred comp should be protected, but maybe not the company match.
Under section 37B of the contract signed by him, it states quite clearly that all offers shall become null and void if - and you can read it for yourself in this photostatic copy - "I, the undersigned, shall forfeit all rights, privileges, and licenses herein and herein contained," et cetera, et cetera... "Fax mentis, incendium gloria cultum," et cetera, et cetera... Memo bis punitor delicatum! It's all there! Black and white, clear as crystal! You stole Fizzy-Lifting Drinks! You bumped into the ceiling, which now has to be washed and sterilized, so you get... NOTHING!!! You lose! GOOD DAY, SIR!