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Studebaker auto workers found out the hard way in 1963. When the Studebaker Corp. shut down its plant in South Bend, Ind., workers who had been promised pensions saw their hard-earned benefits vanish in an instant. Instead of receiving fixed payments throughout retirement, thousands of employees were forced to take one-time lump sums worth a fraction of what they’d earned. Thousands more received no benefits at all. The Studebaker Corp. had been promising pension benefits to its employees, but in reality it was putting away no money to fund these pensions — and it wasn’t alone.
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If you're fortunate enough to get a company match in your 401(k) savings plan, you might be feeling lucky. Unless you're in a plan that's being shortchanged by your employer.
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