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Empower - Learning center - Protecting - Protections for your account

Protections for your workplace retirement account

During market fluctuations, it’s easy to wonder what might happen to your workplace retirement plan if your employer experiences any hardship. You’ll be glad to know if you’re investing through your employer, there are safeguards in place.

How contributions to your workplace retirement are handled

  • The contributions you make from your paychecks will always be yours.
  • If you receive an employer match or profit-sharing contributions, you will receive the amount that is fully vested per your plan’s vesting schedule.

What if the company that manages my workplace retirement plan experiences financial hardship?

Precautions are in place based on specific investment options:

  • Mutual funds — Shares belonging to the plan are held by a trustee/custodian and can’t be touched by a creditor.
  • Securities/Employer securities — These are also held by a trustee/custodian and isolated from financial hardships.
  • Insurance products — The guarantee1 provided by general account products offered within a retirement plan is backed by the general assets of the insurance company issuing the contract.

1 Guarantees are subject to the terms and conditions of the contract and the claims-paying ability of the insurer.