Retired Members

[FranklinB]

I need some clarification on this.

Say plan member John aged 65 is retiring and choose to receive a life annuity. The Plan goes and purchase a life annuity for him from insurance company A. At this point, after paying for John's annuity, does John comes off the Plan's book since A now takes care of John, or would the monthly stipends still be paid from the Plan (who receives it from A).

An extension to the above question is, say the Plan goes bankrupt 5 year down the road with a transfer ratio of 50%. Would John's pension amount get cut by half or is he fine?

Thanks in advance.