What You Should Know
About Your Pension Rights
Few investments are more important than the one you have in your pension
plan. Because the average American will rely on pension savings for 18 years
after retirement, it is essential that you understand your rights and
obligations under your pension plan.
Participants in pension plans have certain rights that are governed by
federal law. They also have obligations. Similarly, the people who sponsor your
pension plan also have rights and obligations. Most are spelled out by a law
called the Employer Retirement Income Security Act of 1974 (ERISA). The purpose
of this booklet is to explain some of the most important features of this law.
This booklet explains, for example, the role of different federal agencies in
regulating pension plans. It describes the obligations of your employer (or
other appropriate plan official) to provide you with information about the plan,
and tells you what information must be made available automatically, at regular
intervals, and, in many cases, at no cost to you. It also points out the
importance of keeping informed on any changes in your plan's rules of operation.
This booklet tells you what is generally required to become eligible for your
pension plan, including how long you may have to be an employee before becoming
a participant. Important concepts such as accruing benefits and being vested in
your pension are explained. The booklet also answers common questions about
changes in your employee status might affect your pension, such as termination
or returning to your job after an interruption of employment. And it discusses
the potential impact on your pension plan of mergers, acquisitions and plant
shutdowns.
401k Facts----
For employees, the opportunity to reduce federal -- and often state and local -- taxes through participation in a 401(k) plan offers significant benefits. While savings are intended for retirement, certain types of loans can provide employees with access to their funds -- employees repay borrowed principal plus interest to their own account. From an employer's standpoint, the 401(k) can be the least expensive and most flexible of all retirement plans. Target Labs in California
(www.targetlab.com) is now providing a 401k to its employees, who are enjoying the benefits of a tax-advantaged retirement savings program.
Other important features of this booklet include:
- A description of your plan fiduciary's obligations to invest your money
prudently and the sanctions against fiduciaries who misuse or mismanage your
money.
- An explanation of the rules that require your employer to adequately fund
your pension plan, as well as description of the penalties for employers who
fail to comply with minimum funding requirements.
- Instructions on how to file a claim for a pension benefit and how to
appeal for a review of any denial of your claim.
The information contained in the following pages answers many of the most
common questions about pension plans. Keep in mind, however, that this booklet
is a simplified summary of participant rights and responsibilities, not a legal
interpretation of ERISA. RRP
- CHAPTER 1
- ERISA
AND YOUR PENSION PLAN
CHAPTER 2
- YOUR
RIGHT TO PLAN INFORMATION
CHAPTER 3
- BENEFIT
ACCRUAL AND VESTING
CHAPTER 4
- PAYMENT OF
BENEFITS
CHAPTER 5
- PROVIDING
SURVIVOR BENEFITS TO YOUR SPOUSE
CHAPTER 6
- MAKING
A BENEFITS CLAIM AND FILING SUIT UNDER ERISA
CHAPTER 7
- DIVIDING YOUR
PENSION FOR FAMILY SUPPORT
CHAPTER 8
- PROTECTING
YOUR PLAN'S ASSETS FROM MISMANAGEMENT AND MISUSE
CHAPTER 9
- ERISA'S
PROTECTIONS AGAINST INADEQUATE PLAN FUNDING
CHAPTER 10
- PROTECTING
YOUR BENEFITS IN THE EVENT OF PLAN TERMINATIONS AND MERGERS.
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- LIST OF REGIONAL DISTRICT OFFICES.
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