Companies are desperate to get conventional pension plans off the books as they represent open end liability, they would much rather buy out participants to lock in the liability to current payoff. The government can force those companies with pension plans to contribute money into the pension systems to support the overall projected deficit which is reported to be in the billions.
Early retirement
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When I checked the PBGC site a while back did have my company's pension listed, but it raised a concern because the phone number was not in service. It as different from the toll-free number I had been calling. A few weeks ago I filed a complaint with the U.S. Department of Labor. At the end of the work day on the next day an agent called me at work. She was very helpful and was concerned the Social Security document that I received recently that I uploaded regarding the pending pension didn't have current administrator information. At the time when it was reported to Social Security in 2007 the administrator changed. I then uploaded the latest document from the current administrator.
I called the pension administrator the week before, amazed (as I always am) that I as able to talk to someone. She claimed the forms to start the pension were sent out, gave the date and even the time stamp. Still didn't believe it as I was told 'it will be sent' multiple times. Amazingly, the Monday after the Friday that I called the DOL the forms arrived in the mail. I reported that to the DOL, and that there were inconsistencies and conflicts on the forms. One form indicated I'm married which is wrong, another indicated by signing it that it confirms my birthdate and that I'm divorced (both correct). The DOL agent advised anything I correct on the forms should be initialed and dated. I don't know if that's going to fly. Just my luck they'll have to do the whole thing over again. My ex also got her much less complicated forms. My forms did indicate the correct percentage offset that my ex will get.
The DOL agent also advised to send the forms certified/return receipt. I went to the post office and did that. I also made electronic copies of all the original forms and after I signed them. Still - seeing is believing. Not confident until I get my first check. After that should be direct deposit.
I hope all of you that have gone through this - or will go through the process have a much easier time than I !
I called the pension administrator the week before, amazed (as I always am) that I as able to talk to someone. She claimed the forms to start the pension were sent out, gave the date and even the time stamp. Still didn't believe it as I was told 'it will be sent' multiple times. Amazingly, the Monday after the Friday that I called the DOL the forms arrived in the mail. I reported that to the DOL, and that there were inconsistencies and conflicts on the forms. One form indicated I'm married which is wrong, another indicated by signing it that it confirms my birthdate and that I'm divorced (both correct). The DOL agent advised anything I correct on the forms should be initialed and dated. I don't know if that's going to fly. Just my luck they'll have to do the whole thing over again. My ex also got her much less complicated forms. My forms did indicate the correct percentage offset that my ex will get.
The DOL agent also advised to send the forms certified/return receipt. I went to the post office and did that. I also made electronic copies of all the original forms and after I signed them. Still - seeing is believing. Not confident until I get my first check. After that should be direct deposit.
I hope all of you that have gone through this - or will go through the process have a much easier time than I !
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of the 3 companies I worked for which had pension funds- all went belly up. All the big shots got there golden parachutes, us workers got the empty elevator shaft. Company self funded programs. Ex wife didn't fair any better- private company sold to 3M, she had some $300k in company stocks as bonuses and such- 3M said she wasn't vested, poof all gone. Everything went south after that including the marriage.
Be glad that you are competent to chase things down. Take good notes including the time, date and person you were taking to and keep copies and screen grabs. Usually old pension plans are held by companies that get to use the money for investments until payout begins so they can make it difficult. They also dont have any legal requirements to try to contact someone with a plan, if no one asks they keep them on the books for as long as they can although in some cases the states grab it as unclaimed property.
Hate when that happens. It sounded familiar and I saw your post from a while back. Speaking of ex wives - mine is several years younger than I, wonder if there's any disadvantages for getting my pension before age 65.
Good tips, and I wondered what would have happened had I not started calling them frequently 6 months ago. On the initial call I was told I'd receive information at the end of April. Never happened... same for other times after that. The only thing I've received consistently over the years as probably everyone else has was the annual funding notice. I can still see this dragging on. They don't know yet that I've called the DOL, or if it would matter.
Another thing I did because I don't trust them - I elected not to have taxes withheld. I'm aware that I'll need to have money said aside come tax time. They've been so difficult to contact, and incompetent with information based on the forms I received, that I'm not confident they would report what they withheld to the IRS and would send me the withholding form the end of the year. I'd think they'd be legally bound to that, but I'd hate to have to start calling again, where 95% of the time the call goes to voicemail. As expected, I never received a call back when I used to leave messages.
As expected - getting good advice and experiences here which I appreciate!
depends on the program and weather you are fully vested in it. Taxes on same can be a nightmare as well. best thing you can do is go to a professional retirement planner or accountant that specializes in this area. There is almost always a penalty for early withdrawal.
I was vested with that company before I left. Yes ideally I'd have a professional to consult. For now I know I'll owe taxes. The pension will start when it should. I turned 65 last month.
Amazingly, after months of phone calls, most than went to voicemail - I received my first pension payment last week. My ex got her payment (a little less than half of mine) as well. It was actually 2 months worth as I was told it would be because they missed the first payment that was due in July,
I know there will be taxes to pay and I must plan/budget accordingly. I could see not getting a tax form at the end of year which would hold up filing my tax return until I'm finally able to contact them again.
@peakbagger - As you mentioned if I wasn't persistent I could see the pension just being held until they were forced in some other way to release it. Even though the Dept. of Labor did not intervene, I updated and thanked the agent I worked with initially when I thought I was getting no where. It's good to know there is such and agency that is willing and hopefully able to help.
Still working full time, not talking Social Security yet. Getting Social Security started has to be easier than this fiasco.
Thanks all for the input, experiences and advice.
I know there will be taxes to pay and I must plan/budget accordingly. I could see not getting a tax form at the end of year which would hold up filing my tax return until I'm finally able to contact them again.
@peakbagger - As you mentioned if I wasn't persistent I could see the pension just being held until they were forced in some other way to release it. Even though the Dept. of Labor did not intervene, I updated and thanked the agent I worked with initially when I thought I was getting no where. It's good to know there is such and agency that is willing and hopefully able to help.
Still working full time, not talking Social Security yet. Getting Social Security started has to be easier than this fiasco.
Thanks all for the input, experiences and advice.
getting SS started is not difficult, deciding how or which way when still working is. added to that SS is taxable nowdays and your exposure depends on the income from still working. Oh and they suck out apx 150/month for medicare which is still counted as income in their grand scheme.
So I should expect difficulty? At least S.S. has a website.I would not bet on that.Good luck!
Yes, a lot to consider such as exceeding the maximum income allowed when collecting S.S. Right now I'm paying for Medicare directly since I'm not taking S.S. yet, in fact I just got a bill for the next 3 months. I guess there's no advantage to having Medicare deducted from the S.S. payment, and maybe there's not an option whether you do or not. My Medicare cost per month is $170.10.
From what I have heard is the biggest issue with social security is that not a lot of folks look at their wage statement which lists past SS earnings. In some cases companies didnt report the correct amount or there was a mistake in the system. SS looks at the best 35 years of quarters to calculate the benefit. If there are any zeros in that history they average in zero. They also adjust past earnings for inflation so that your best 35 years or quarters may not be you last ones. They also adjust for relative income, people on the low end of the earnings ladder get their income boosted while those above the average get their income deflated. Once they got all the earnings adjusted they figure out the annuity value for full retirement age. Remember us boomers full retirement age (FRA)gets raised for those born around 1960. I was born in late 1959 so my full retirement age is 67 year and around 9 months. If someone wants to retire early and are subject to the increase in FRAget nailed worse than folks with FRA of 65. If some waits until 70 to retire they get 8% per year boost for every year they go over FRA.
Most advisors suggest delaying SS and using other plans like IRAs to fund early retirement as SS is one of the fee plan that has built in inflation increase.
Of course all bets are off when SS run out of trust fund and they only pay out what is coming in. There are many conservatives that want to privatize SS as way of ducking out of long term liabilities. They make comparisions to equity investments, the comparison should be made against annuities with inflation protection.
Most advisors suggest delaying SS and using other plans like IRAs to fund early retirement as SS is one of the fee plan that has built in inflation increase.
Of course all bets are off when SS run out of trust fund and they only pay out what is coming in. There are many conservatives that want to privatize SS as way of ducking out of long term liabilities. They make comparisions to equity investments, the comparison should be made against annuities with inflation protection.
For some like me, income went significantly down during Covid. But, like you said S.S. is based on an average thankfully. I looked at S.S. statements that I saved from several years ago which predicted a payment a few hundred dollars less than my current statement. So, the lack of hours and pay reduction during Covid didn't seem to have a significant effect. I did receive partial unemployment based on how many hours I worked, but of course that's not including in the annual S,S, statements, The company I worked for at the time furloughed us in April 2020 making us part time. Stayed that way after things and the business environment picked up which is why I left that company for a full time job almost a year ago.
Math is significant when making these decisions - sure the maximum benefit age is probably best, but I don't know what the (somewhat short) future before that holds. Taking S.S. early while working of course means less S.S payments - but then you should look at how long it would take to make up the difference by taking it at full retirement age. And - if I understand the correctly, if you do take S.S. early and have reduced payments due to work, at full retirement age he benefit is recalculated to return what was withheld. Don't know if it's all - or a reduced amount. Also I'm pretty sure pension payments do not count as income for S.S.
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