Expert: Allen - 6/3/2006

Question
I left a company in which I was fully vested in a pension plan that required no participation by me.  Upon request, is the company obligated to pay out anything so that I may roll it over to an IRA or 401(k)?  If so, how is it determined how much?  If not, is my only option to wait until I retire and hope they are still around?

Answer
It sounds like you were a participant in a defined benefit pension plan. If this is the case the answers to your questions depend on what the plan document says. Some plans provide for payment on termination. Others require you to wait until what is known as the normal retirement date. Some plans only pay in the form of a pension. Others give you the choice of a pension or a lump sum which can be rolled over to an IRA or 401k plan. You need to contact the plan administrator or your old employer to get this information.
In any event the assets of the plan are in a trust fund which is separate from the company. So you will receive your pension or lump sum (if it's an option) no matter what happens to your former employer.