Accounting, Payroll & Pension Issues/Pension rights and laws of california

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Expert: - 8/1/2009


Question
i work in a union from 2004 - 2006 i had a pension plan with the union that was in the amount of $3,000 dollars. I was promoted to management and was out of the union. the union told me i was not entitled to my pension or i couldn't roll it to my 401k or an IRA. please let me know if this is correct or if i have a right to my pension i am only 26 years old currently waiting until i am 65 to get a small pension dosent make any sense. pleas help

Answer
Your rights depend on whether or not that money was actually yours at any point.  In other words, was any part of that 3,000 taken from your wages?  If not, then you may very well not have any right to it.

Labor Unions often have strict vesting and funding rules for their pension plans.  If you only worked there for 2-3 years, you probably weren't vested or entitled to a funding allocation.  The easiest thing to do would be to call them back again and politely ask for a copy of the Plan Document or Summary Plan Description if you don't have a copy already.  Then try to stay awake while you read through the rules of vesting and allocation.

Good luck to you!

Accounting, Payroll & Pension Issues

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Vanessa D. Powell, CPA

Expertise

I am experienced with general bookkeeping, payroll, journal entries, adjusting entries, all types of pension accounting, compliance issues, ERISA, benefit plan auditing, financial statements, payroll tax, Form 5500, retirement planning, and related issues. Please no homework questions. Only US accounting, please.

Experience

I am a CPA in Southern CA. I audit not-for-profit organizations, corporations, and employee benefit plans for the large accounting firm I work for, as well as performing other attest services, planning, and tax services.

Organizations
California Society of CPAs, American Institute of Certified Public Accountants

Education/Credentials
Licensed CPA in the state of CA. Graduated summa cum laude from Colorado Technical University. In order to keep my license, I take 80 hours of CPE every two years. Much of it in the field of accounting, auditing, and employee benefit plans.

Awards and Honors
Graduated summa cum laude (with highest honor).

Past/Present Clients
I have clients from all over the world, in nearly every industry. Most of my audit clients are employee benefit plans and not-for-profit entities. Most of my compilation engagements are manufacturing, agriculture, and construction.

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