Pension advice when company bought out by another company?

Even with limited details, I'm hoping someone can offer some decent advice.

My mom and her friend/coworker told me that they and their coworkers are all having trouble with their pension information since Rite-Aid took over Eckerds. My mom had more than 80k with Eckerds and now suddenly there is only 50k left with no explanation. Her coworkers are all complaining of the same type of problem. When they call to get more information about what's going on, they are treated quite rudely and told they will get more information at a later time.

I'm thinking she may have had some option regarding her pension before the buy-out took place, but I'm just now finding out about anything now that there is a problem. I know my mom needs to be proactive, so what can she do now?

i think you answered your own question -- i would like to see all of the info that these employees were given prior to the buy out and what options they had!!!

I am not really understanding what you are asking.

Is this an issue with a pension plan or a 401k?

What does the $80K represent? What does the $50K represent?

I can see that such drastic changes in value are alarming but without knowing what the circumstances are and the assumptions behind each number it is hard to say.

The best I can do is describe possible scenarios:

1. Suppose both numbers represent balances in a 401k.

If you mom's account balance was $80,000 in January and $50,000 in June, then 1) you are right and there was a mistake made, 2) the assets in the account were in stocks or long bonds that declined in value over that period.

2. Suppose that both numbers are pension annuity benefits: This means that your Mom was due $80,000/year under the old Eckerd plan and only $50k/year under the Rite-Aid plan. If both benefits are payable at the same normal retirement age your mom has lost a large amount of value. If, however, the $50K is payable at age 55 and the $80,000 is payable at age 65, the value of these two benefits is about the same. Note that the only way this scenario is plausible is if you Mom makes much more than $80,000/year in pay.

3. The $80,000 is an account balance and the $50,000 is an annuity benefit. If your mom is in her 40's or early 50's, and Rite-Aid converted an account balance plan (often called a cash balance plan) discussed in terms of an account balance to one in terms of an annuity, these two values could be somewhat equivalent. The way to think about this is: You have a choice between $80K now and $50,000/year starting 15-20 years from now. Which is more valuable?