Breaking ties with a former employer is not always a good thing. and it is sometimes bittersweet. And, other times, it is just simply bitter. If you had a pension plan at your former job, you are going to want to collect it. However, you may be wondering whether you will get the money or not and how you can collect it from your former employer.
People change jobs all the time, and this can actually be a huge problem. You may know someone who’s had to deal with a difficult employer and trying to collect on the pension they had saved. This review gives you some tips on how you can go about this.
Now, the kind of pension we are talking about is the defined benefit pension. With this type of plan, you contribute to the company and expect to receive a regular stream of income from the company when you retire. This is not the social security that is given by the government.
Tips For Collecting Your Pension
Some people actually do lose track of the pension they had contributed to during their tenure at an old job. The company might even have merged with another one, changed their name, or moved to a different location, but this doesn’t mean that you lost your contributions. These are rightfully your savings that you must reclaim from the employer.
Find And Contact The Employer
It’s very easy to find people nowadays, and a simple google search will give you details of your previous employer and even their location. Look for them and either visit the premises yourself or use a third party to carry out the initial contact. Even if the company was inherited by another company, they have a legal obligation to pay you your pension. Also, contact former employees of the company, or the union that represented you, in order to find out how you can go about the process of recovering your savings.
Consider Contacting The Insurance Company
Most employers will save your pension through an insurance company. This means that you can reach out to the company directly. It may be difficult for the insurance to pay anything directly to you, but they can give you tips on how you can go about accessing your money. Especially if you believe it will be difficult to reach your employer, this is a great contact for you.
Search For It
You can search for your pension with the Pension Benefit Guaranty Corporation (PBGC). This is a company that insures many private sectors with their traditional pension plans, and they pay out benefits to a specific amount. They have a huge database of many unclaimed pensions, which includes more than 38,000 people whose payments have gone uncollected.
For example, there are more than 2,300 employees from United Airlines who never claimed their pension and their names are listed on the company website. There are many other companies listed as well. The company claims to have more than $200 million worth of unclaimed pensions. They, however, do not insure 401(k)s or pensions from law offices, private doctors, companies with less than 26 employees, state and local government offices, or religious groups.
Organize All Of The Paperwork
You will need to have all of your paperwork from the previous employer well organized to show proof that you worked there. This should include your contract letter, your exit letter, and even your participation in the pension plan. In addition, payslips and W-2 forms that show your employment dates and earnings are also helpful. These will also show the amount of money you contributed to the pension plan. When you signed up for the social security plan, you must have received some notice in the mail as well, with your employer details. All of these documents will help you collect your money.
Check Your Spouse’s Information
Sometimes these pension plans are provided for married couples. In these cases, the two people are joint contributors so this information can be found on the spouse’s documents. This documentation will also help you in the event that you lose a spouse; you can collect their benefits as well.
Understand The Rules
You must understand the fine print of pension contributions. Sometimes a plan can involve contributions for a specific amount of time, and you are only allowed to withdraw when you reach a specific age, such as 50 or even 60. If this is the rule, then you cannot access the money at any other time, even if you are no longer employed at the company where you had the plan.
Collecting your pension is your right, and it is legally protected. The government ensures that you receive your contributions, and therefore you shouldn’t worry about whether you will receive the money or not. In fact, the employer is not even allowed to use it to pay any loans they may have extended to you. This is your money that should be given to you directly. So, if you have been wondering how to collect your pension from your former employer, we hope these tips will help you.