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Prepared by the U.S. Department of Labor
What You Should Know About Your Pension Rights
Introduction
Few investments are more important than the one you have in your pension
plan. Because the average American will rely on pension savings for 18
years after retirement, it is essential that you understand your rights
and obligations under your pension plan.
Participants in pension plans have certain rights that are governed by
federal law. They also have obligations. Similarly, the people who sponsor
your pension plan also have rights and obligations. Most are spelled out
by a law called the Employer Retirement Income Security Act of 1974
(ERISA). The purpose of this booklet is to explain some of the most
important features of this law.
This booklet explains, for example, the role of different federal
agencies in regulating pension plans. It describes the obligations of your
employer (or other appropriate plan official) to provide you with
information about the plan, and tells you what information must be made
available automatically, at regular intervals, and, in many cases, at no
cost to you. It also points out the importance of keeping informed on any
changes in your plan's rules of operation.
This booklet tells you what is generally required to become eligible
for your pension plan, including how long you may have to be an employee
before becoming a participant. Important concepts such as accruing
benefits and being vested in your pension are explained. The booklet also
answers common questions about changes in your employee status might
affect your pension, such as termination or returning to your job after an
interruption of employment. And it discusses the potential impact on your
pension plan of mergers, acquisitions and plant shutdowns.
Other important features of this booklet include:
- A description of your plan fiduciary's obligations to invest your
money prudently and the sanctions against fiduciaries who misuse or
mismanage your money.
- An explanation of the rules that require your employer to adequately
fund your pension plan, as well as description of the penalties for
employers who fail to comply with minimum funding requirements.
- Instructions on how to file a claim for a pension benefit and how to
appeal for a review of any denial of your claim.
The information contained in the following pages answers many of the
most common questions about pension plans. Keep in mind, however, that
this booklet is a simplified summary of participant rights and
responsibilities, not a legal interpretation of ERISA.
Table Of Contents
CHAPTER 1: ERISA And Your Pension Plan
CHAPTER 2: Your Right To Plan Information
CHAPTER 3: Benefit Accrual And Vesting
CHAPTER 4: Payment of Benefits
CHAPTER 5: Providing Survivor Benefits To Your Spouse
CHAPTER 6: Making A Benefits Claim And Filing Suit Under ERISA
CHAPTER 7: Dividing Your Pension For Family Support
CHAPTER 8: Protecting Your Plan's Assets From Mismanagement And Misuse
CHAPTER 9: ERISA'S Protections Against Inadequate Plan Funding
CHAPTER 10: Protecting Your Benefits In The Event Of Plan Terminations And Mergers
THE TEXT ABOVE IS PUBLIC DOMAIN MATERIAL AUTHORED BY AN AGENCY OF
THE UNITED STATES GOVERNMENT AND NOT COPYRIGHTED BY THIS WEBSITE.
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