Expert: Allen - 11/24/2008

Question
I have an issue.  My job was recently eliminated.  I am a participant of my employers pension plan.
1.  I was a contractor for the employer for 10 yrs.
2.  I became an employee 5 yrs. ago.  I negotiated that the 10 yrs. as a contractor would be counted in my pension years.
3.  My termination date was 11/08 & I have 10 + 5 = 15 pension yrs.
My question is - when I exit the plan with a lump sum payout - should my pension amount be calculated by my pension yrs. of service (15) or years of service (5)?  What should these pension yrs. be used for?

Answer
I am not a lawyer and therefore can not give legal advice. Saying that, my thinking, for what it's worth, is that if your contract states that you will receive credit for the 10 years as an independent contractor, then the pension plan benefit should be based on 15 years of service.
If you want a legal opinion you will need to hire a lawyer.