Expert: Allen - 9/1/2010

Question
QUESTION: My company is no longer funding the union pension fund and I'm being told that because I'm not yet vested that I no longer have a pension. 3 years worth of company paid contributions will roll into the national pension fund and I will never see a penny of it. I continue to work at the same company and am still a member of the same union. I'm losing the pension through no fault of my own, is that legal? Is there anything I can do about it? Thank You.

ANSWER: When a pension plan is terminated all participants become vested in their benefits. So anything you earned is yours. It can't be taken away.

However, you may not be losing anything. The benefit is probably being transferred to the national plan and will be yours when you stop working in a union job.

Check with your union. If you don't get a satisfactory answer, you can contact the local office of the U.S. Dept. of Labor - Employee Benefits Security Administration. They can help you.

---------- FOLLOW-UP ----------

QUESTION: The plan is a national (CWA/ITU NPP) and it's not actually terminating but the company is no longer funding it as they come out of bankruptcy. I'm being told that they can't legally pay lump sum payouts as they once did, they refer to the Pension Protection Act of 2006. I’m also being told that I can resume earning service credit if I find employment with a company contributing to the same pension fund but I must do so within the next five years. But if I do not find such employment they keep the contribution and I don’t see a dime at retirement. Thank You for your advice.

Answer
Since the plan has not terminated, your benefit is determined by the terms of the plan. The plan probably requires 5 years of service before you become vested. It also probably provides that if you've had what is known as 5 breaks in service ( five years in which you were not credited with at least 500 hours), that anything earned before you bacame vested is lost.

Sorry that I can't give you a better answer.