Private Pension Rules Frequently Asked Questions

A set sum of money that an employee receives, mostly post retirement

, is termed as pension. Pension plans may vary from one company to the other. Below are a few questions that have been addressed regarding private pension plans:

If a husband and his spouse are divorced a year before he passed away, will the spouse still qualify to receive his private pension benefits?

Unless otherwise specifically mentioned in the divorce judgement, the spouse may not qualify to receive the private pension benefits.

Would a mother who retired with pension need to let go of her pension if she takes up a retail job or is she uses another credit union?

A companys policies or terms govern pensions. In the scenario mentioned above, the mother would most likely receive her pension unless and until she has not or is not following certain terms and conditions set by the company.

One was terminated after serving the company for ten years and nine months. They stated that they had no record of the employees pension. The information that the employee had was that once 7 years of service is rendered one would be vested and the pension cannot be lost. This employees pension was contracted through the union. To get back his/her pension, what evidence would the employee need to furnish?

To prove that one was working for the union, he/she may provide a union representative with pay stubs or copies of old tax returns. The union may not be able to assist in locating ones pension unless there is substantial evidence of being employed at the union. The pension itself would determine the pace at which the pension would have vested. There are pensions that vest immediately and others that may be reabsorbed by the company post a passage of time.

A wife was sent her ex-husbands pension plan by Social Security (SS) suggesting she check if she can receive it. Since he is her ex-husband, as per law what are her chances of obtaining the pension?

If the wife is not re-married and the husbands pension for SS is greater than her benefit; she should qualify to receive her ex-husbands pension. If she is re-married then she would not be eligible to avail the benefit unless the spouse has expired or the wife is divorced. The Social Security office may be able to provide more information.

An employee is receiving disability pension and not Supplemental Security Income (SSI). This employee would wish to know if the former employer can stop him/her from working and try to punish by not releasing the check if he/she does work.

The employees pension falls under the Employees Retirement Income Security Act (ERISA). But according to ERISA, the plan description is the law/contract of the retirement plan. Most of the time, if a person is working; he/she would not be able to receive benefits as per the retirement plan. Retirement plans and their terms vary. Therefore, one would need to review the terms of the retirement plan that they follow. As per the plan if one should not be working to be eligible to receive the retirement benefits, then they would not receive the benefits.

A private pension plan may give an employee a strong feeling of financial support and relief after ones retirement. Even with this security, it is important to understand how pension plans works and what they entitle. When you need clarification on issues, its always best to ask an employment lawyer.

by: MeghanJones

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