Not allowed to. Cash out or move pension

[Kozanton]

What is the name of your state? Missouri
Hello,
I recently left a job after 12 years, and had a pension through the company (BJC Healthcare). I wanted to take a cash out option for this pension now that I am not at the job anymore and I need the money. They told me I can only cash it out if it is worth $25k or less. I was told today that it is worth just over $29k and I cannot do anything with it except "leave it alone until I retire" I don't think this is true. I want to cash it out or at least have access to part of it. Can anyone help?

 

[adjusterjack]

I doubt if anyone here can help since we can't read your pension plan terms and conditions.

Perhaps you should read them and see if there is anything in there about the cash out option.

 

[xylene]

They told me

Who is they?

I suggest you contact your pension plan administrator and make sure that you get everything you are told in writing.

 

[Pinkie39]

I've had funds sitting in a pension plan with a former employer (a church) since 2008.

Basically same situation as OP. I couldn't take the money out when I left because it was over $10,000. It's stuck in there until I either turn 55 or pass away.

I had never heard of an employer having such tight restrictions on a pension plan, but after reading this, I guess it's not so unusual.

 

[cbg]

There are Federal regulations that put very strict limits on what kind of distributions can be taken from retirement plans, when, under what circumstances, and at what ages. The employer determines at the implementation of the plan (that doesn't mean when the employee joins it; that means when the employer creates it) what distributions will be allowed, but those decisions must follow the regulations set down by the IRS. Once the final decisions are made and the plan document created, those decisions are carved in STONE. Violating any of them could result in the IRS dissolving the plan altogether. Usually you can move a fund to another qualified plan, but not cash it out until at LEAST age 55, regardless of the amount (there are horrible penalties and taxes for early distributions) but that's not mandatory, just usual.