Pensions: Questions to Ask About Your Plan
By: Source: AARP.org Date Posted: 2005-03-20 12:09:00
What type of plan?
- Is there a pension plan where I work?
- If so, what type of plan is it? For example, is it a private, military, civil service, or state pension plan?
- Is my plan a defined benefit or defined contribution plan?
- Who contributes to the plan?
- Have I met the plan ' s eligibility or participation requirement?
Will I get a pension? How much will I get?
- How many years of work do I need before I earn a right to a pension?
- Will all my work years count towards earning my pension? If not, which years will not count?
- Which years will my plan count in calculating my benefits?
- What is the formula for calculating my benefit?
- If I retire at my " full retirement age, " how much will my pension benefit be worth on a monthly basis?
When will I receive my benefits?
- What is the normal retirement age for my plan?
- Can I receive my benefits before I reach that retirement age? If so, at what age? Will my benefits be reduced?
- When am I eligible to receive my benefit? When must I begin receiving my benefit?
- Can I take early retirement?
How will my benefit be paid?
- What are my choices for receiving my benefit? Examples may include a lump sum distribution, a life annuity, and a life annuity with a 10-year certain.
- Will my pension benefit be reduced by Social Security benefits?
- Will my pension benefits be adjusted for inflation?
Will my spouse receive any benefits if I die?
- What happens to my pension if I die before I start receiving benefits?
- What happens to my pension if I die after I start receiving benefits?
- If I die, will my spouse receive any of my pension benefits? What percentage will my spouse receive? When will my spouse be eligible to receive a pension benefit?
- Has my spouse agreed not to receive a pension benefit?
- What happens to my pension if I divorce?
- What happens to my pension rights if I change my job?
- What happens to my pension rights if my employer terminates me and I resume work for that employer at a later date?
- What happens to my pension if I decide to go back to work after I begin receiving my pension benefits?
- What happens if my pension plan is terminated? Is my pension insured? By what entity?
- What happens if my employer goes out of business?
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