Expert: Allen - 4/21/2007

Question
Hi Allen,
I was downsized from  a job with NY state in 1991 after 9 years of service. When I started the position our pension had a 10 year vesting requirement. I was recently told by someone who works in the pension record keeping area that as of Jan 1 1989
an ERISA law was enacted that required all pensions to have a 5 yr vesting requirement.

My questions are:

Is this true and is it possible that I could have pension money coming to me?

Who would I have to call to find out?

If this is the case would they have to pay interest on these funds for years since?

Thanks Allen, I appreciate your service to this site!  

Answer
The answers to your questions are:

1. Your friend is correct. However, plans established by state government bodies are often exempt from the rules. Since I don't work with government plans, I don't know the answer.

2. There are two alternatives available to you.
a. You can contact the human resources department of the agency you worked with and ask them for a copy of the Summary Plan Description. If they can't send it to you because you are no longer a participant, ask a current employee to get you a copy or ask the human resources department if you can examine a copy of the plan document at the agency offices.
b. Call the local office of the U.S. Dept. of Labor, Employee Benefits Security Administration. They should be able to help you.

3. I'm guessing the plan is a traditional (defined benefit) plan. In this case if you are entitled to a benefit, it is in the form of a pension beginning at a certain retirement age such as 65. If this is the case you are not entitled to interest. However, the benefit increases in value as you get closer to the retirement age. If my guess is wrong and it's a plan with an account, then you are entitled to interest.

Good luck.