§ 26129 Gain And Loss Reserve

• •There's a special savings account called 'Gain and Loss Reserve' for a retirement program.
• •This account helps pay employees and employers the minimum interest they were promised, even if the program's investments didn't make enough money that year.
• •It can also be used to help pay monthly retirement checks if needed.

Imagine a company promises its workers a certain amount of interest on their retirement savings every year. But one year, the company's investments don't do well and don't make enough money to pay that interest.

The 'Gain and Loss Reserve' is like a backup piggy bank. The company can use money from this reserve to pay the workers the interest they were promised, even though the investments didn't make enough that year.