I know Pension is not 401k but...

[flipdel]

undefinedWhat is the name of your state? California

I am currently on leave from my job as I am under doctors care for mental instability due to my employer. I may or may not retire because of this verses trying to take it to the next level of fighting whose right and whose wrong. I'm exhausted from it.

I have a pensionplan from my former employer before this one who I was with for many many years when I lived in Pennsylvania. I informed them because of my situation I may retire from my position and would like to see about geting my benefits, They explained to me that because I was not 55 (I'm 43) I could not. I also explained, What if I depended on this money to live I would have to live under a rock until I was 55?, The response I got was, "That is correct sir".

Is there any way of getting my money which I earned and stored for my retirement to me before 55? I understand the whole 20%-10% tax laws. I just dont want my money with this company any more after a comment devoid of compassion was made to me and since I pla on retiring because of my condition now anyway. help>>

Flip

 

[pattytx]

Pension plans are regulated by ERISA. The plan trustee must abide by the plan document. If the plan does not allow for payment before a certain age or under your particular situation, then that must be adhered to, or the plan could lose its beneficial tax status.

Do you have a copy of the SPD (Summary Plan Document) for the plan? If not, contact the company and ask them to send you a copy. It has nothing to do whether the company wants to be compassionate or not. If the plan does not allow such an early payout, then it can't be legally done.

 

[Beth3]

If your former employer's pension plan dictates that a participant cannot have access to any monies until they are 55 years of age, then that's it. Pension plans are HIGHLY regulated by the federal government and I assure you that your employer cannot violate the terms of the Plan no matter how compelling the reason.

If you are declared totally disabled, it's possible the Plan may have a disability provision allowing for early access to the proceeds but you're going to have to review the terms of the Pension Plan to determine (a) if it contains such a provision and (b) what the criteria are to establish that you are disabled and entitled to an early distribution.

 

[cbg]

In addition, while I am not a pension expert my understanding is that under Federal law, a pension plan CANNOT be distributed prior to age 55.

This has nothing to do with your employer being or not being compassionate. This has to do with your requesting your employer to do something which, if they complied with your request, would put them in the position of violating the law. I can't blame them for not being willing to violate the law in order to be "compassionate" to you.

 

[porcelina68]

Do some more research

undefinedWhat is the name of your state? California

I am currently on leave from my job as I am under doctors care for mental instability due to my employer. I may or may not retire because of this verses trying to take it to the next level of fighting whose right and whose wrong. I'm exhausted from it.

I have a pensionplan from my former employer before this one who I was with for many many years when I lived in Pennsylvania. I informed them because of my situation I may retire from my position and would like to see about geting my benefits, They explained to me that because I was not 55 (I'm 43) I could not. I also explained, What if I depended on this money to live I would have to live under a rock until I was 55?, The response I got was, "That is correct sir".

Is there any way of getting my money which I earned and stored for my retirement to me before 55? I understand the whole 20%-10% tax laws. I just dont want my money with this company any more after a comment devoid of compassion was made to me and since I pla on retiring because of my condition now anyway. help>>

Flip

My pension plan with my employer states that you can get that money if you are 100% vested (after 5 years) if you leave employment with that company. Provided that you are not now employed by an affiliate of that company, you may be eligible to receive the benefit. There are also provisions in it to get the money if you become disabled.

Ask them for a written copy of the pension plan benefit description. This will detail your rights to you.

 

[Beth3]

porcelina, you are probably referring to a 401(k) Plan or some other type of defined contribution retirement plan. That is not a pension plan.

Pension Plan refers to a very, very specific type of retirement plan.

 

[porcelina68]

Um, No.

I am referring to my company's Pension plan. It is not a 401K - that is a separate plan that I have, too.

 

[Beth3]

Then I'm totally confused as to what you're referering to because a pension plan is a defined benefit plan - it has no cash value per se. It's a future liability on the part of the employer based on a formula of wages earned and number of years worked when someone retires. A pension plans with no other requirement than a five year vesting schedule would not be a pension plan as defined in federal law. It may indeed be some sort of retirement plan but I seriously doubt it's a pension plan.

 

[porcelina68]

It is my company's plan - titled "Cash Balance Pension Plan". I do not contribute to this plan - it is entirely funded by my company. After 5 years of service, I will be fully vested. If I leave the company, I am entitled to this money. It is compliant with Federal regulations.