Expert: Allen - 7/25/2007

Question
is a pension reduced for age by 50% and called an early retirement even though I'm 100% disabled ? the pension is my ex-wifes' she is 50years & 10 months.I am entitled to half under Calif. community property law and local 1036 is reducing my benefits and calling it an 'early retirement.

Answer
It all depends on the wording in the plan document.

Some plans do not make an early retirement adjustment when retirement is due to disability. However that's the minority.

Most plans will allow early payment when retirement is due to disablity but make an early retirement adjustment. It sounds like this is what is happening here.

It could actually be worse. Some plans don't allow for early payment even when it's on account of disability.