Posted on 01/10/2022 10:12:25 AM PST by George from New England
I have a pension from a diocese job I had years ago. It is supposed to start on January 1, 2022. Worked from 2007 until 2016. Had to wait until a certain age to start.
I have repeatedly asked the pension management firm for documentation regarding the math and calculations for their arriving at the benefit amount.
Does the law require them to accommodate my request ?
What experience has any other freeper had in this type of matter?
The contribution percentage changed in 2015 and I want to see that they didn't apply that from the beginning.
Once I sign the form to get the first check I am locked in for life.
Is this a 403B account? Is it a defined benefit plan? What sort of 'pension plan' is it?
State laws will dictate what is required of the employer regarding pensions.
consult with an employment lawyer perhaps?
or write to your local state rep?
“Does the law require them to accommodate my request ?”
Yes they do and within so many days.
Pension funds are highly regulated by each state.
I forget who can help you but your state has a govt body that protects and looks out for pension plans and employees. Similar to the state Dept of insurance that will look out for consumers having issues with insurance companies.
I would contact your state dept of insurance and they can tell you who to contact.
I think it depends somewhat on the specific info you are requesting. Do you think they are giving you too LOW of a pension amount?
You can sort of check this by looking at annuity calculators online.
Based on the value of the account, and your age, you should be able to come close to getting the same amount as they do.
Do you have an option to take in a lump sum? Are you over 59.5?
If there is a “lump sum” option, take it.
Also, do you know whether you were fully vested (meaning, entitled to any employer contributions) at the time you left that employment?
I worked in a small rural hospital for seven years in the 90’s. When I retired five years ago, I sort of remembered I was vested. Of course my wife said I was F.OS. I called the personnel dept. and the director still remembered me. I have been getting $500/mo for four years now. I wonder how many unclaimed pensions are out there?
Church plans are usually exempt from ERISA.
Just turned 65.
The amount they say for the last years monthly income is off.
They say $1905
I calc $1949
Up til 2015 there was a 2% contribution, then changed to 1.45% from 2016 on.
Just want to see clean numbers on a spreadsheet.
No 403B. Its Florida.
Maybe they are using an age 64 calculation?
If the value was compounding, if you recalc it using the 1.45% a year earlier, does that make it match theirs?
Make sure they did the math right before you sign.
I had a pension where I had two options and then after I signed they told me the amount was wrong and I’d actually be getting less per month than I thought because they made an error.
If something doesn’t make sense, check it out carefully.
And getting the pension paperwork was a pain. It was like they were actively trying to make it as difficult as possible to not have to pay out.
IMO, take the largest amount possible even though it will likely be for a shorter time. If hyperinflation hits, the money will quickly become worthless and this way you could possibly invest it and do better.
“I wonder how many unclaimed pensions are out there?”
Lots and lots. My dad used to set up sep pension plans fo companies. People have money in their individual accounts and quit their job and the pension companies can not find them. They moved and the investment company cannot find them.
Most of these people were young males and had maybe $400-600 in their account. Most probably had no idea what they even had.
My CFP took over my dad’s sep business and still gets certified letters they cannot find the employee and the money gets sent to the state after so many years.
These things are audited. Eight years into my pension they discovered they weren’t paying out enough and set me a lump sum for the back payments. Just take the money and run.
Can I also assume that if the correct date to start was 1/1/2022 that when this matter is finally settled and signed, that back monies HAVE TO BE PAID UP, back to 1/1/2022 ?
Mine did but that was because they screwed up some.
It had to do with when I submitted the application.
Try this site for help:
Early Retirement & Financial Independence Community
https://www.early-retirement.org/forums/
(7)
Accelerated Lump Sum Payment To Member. Beneficiarv.
Or Alternate Payee Within One Year Window
(B) lf the amount of the benefit othenruise
payable to a
Member who is a Lay Employee, to a Beneficiary or to an alternate
payee, pursuant to the provisions of section 9.1,7’1(c), or 9.4’
respect¡vely, is less than three hundred dollars ($3OO¡ per month,
the Member, Beneficiary or alternate payee may elect to receive an
Actuarially Equivalent lump sum benefit payment as soon as
practicable; provided, however, that the election period during
which the Member, Beneficiary or alternate payee may elect an
accelerated lump sum benefit payment pursuant to this section
9.2(dX7) shall commence as of the date he or she receives notice
from the Professional Plan Administrator of his or her eligibility to
obtain payment of the benefit and shall end at the close of the
twelfth (12th) calendar month beginning thereafter. For purposes of
determining whether the amount of a benefit subject to this
subsection (dX7XB) is less than three hundred dollars ($300) per
month, the determination for each Member shall be made as of the
Member’s Normal Retirement Date and the determination for each
Beneficiary or alternate payee shall be made as of the applicable
annuity starting date.
The amount is $251 per month.
Does this passage suggest I can take a lump sum ?
Yes, that would certainly be the way I read it. Just be aware that the lump sum is likely fully taxable as ordinary income.
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