Are Pension Plans Allowed to Do This?

[Eternally]

Husband was laid off in February. We learned - on our own by requesting some information - that anything that HE contributed to the plan over the 28 years he was there that he was allowed to withdraw it without the age limit restriction.
(It took almost a MONTH to get the statement that showed he had contributed about 14K) ((We are not touching the company contribution that is supposed to give a 4 digit monthly income at retirement.))

We were then told to call and request the form to withdraw it - minus 20% they will tax to make sure we pay taxes on it -

We called and requested the form April 4th.

Still haven't gotten it.

When we call they say -
the funds are not set for dispursement until June, the form will come.

Last week we were told if it wasn't here by this week to call and they will 'push it'.

Today they said it was printed on May 7. That we should have it in the mail any day. :rolleyes

NOW he says that the funds may NOT be disbursed June because we don't have the form yet, we haven't called to make sure we sent\d back the right options, - and it will take time for us to get the form back once we get it.... yada yada yada :shocked

Can they do this?

What is their problem? :faint

[MovingforJesus]

$ they want all they can get from YOUR money.

[Eternally]

$ they want all they can get from YOUR money.

Are there no laws governing what pension companies can and cannot do?

[BeNotAfraid]

I assume he isn't union...:) All I can say is be a VERY squeaky wheel--that's the only way to get things done sometimes. You can always tell them you're seeking an attorney to determine what your next steps will be if they do not cooperate...give them a timeline.

I'm sorry about your husband's job :(

[Eternally]

I assume he isn't union...:) All I can say is be a VERY squeaky wheel--that's the only way to get things done sometimes. You can always tell them you're seeking an attorney to determine what your next steps will be if they do not cooperate...give them a timeline.

I'm sorry about your husband's job :(


Thanks,

ACtually God is AWESOMEEEE!!!!

yes, he lost his job, BUT, he has full pay severance thru November, AND he got another engineer position within a month, so all the severance AND then pension is getting our debt down to just a car pmt and home equity and first mortgage!!! Paying off a LOT of debt that we had no other way to do :yeah

As long as the country holds together until then. :pray

[BeNotAfraid]

Thanks,

ACtually God is AWESOMEEEE!!!!

yes, he lost his job, BUT, he has full pay severance thru November, AND he got another engineer position within a month, so all the severance AND then pension is getting our debt down to just a car pmt and home equity and first mortgage!!! Paying off a LOT of debt that we had no other way to do :yeah

As long as the country holds together until then. :pray

YAY!!!! God can work all things for good!!:hug

[newbeliver]

I had to cash in my 401 and had no problems. I just called them and they did it over the phone and the money was wired into my account in about two days.

[Tall Timbers]

These Pension companies take as much time as they possible can to give up any money... they're not in business for you but for themselves, make no mistake about it... and it doesn't take much interaction with one of these companies to get the idea that they're not very honest.

One concern that comes to mind is: If you withdraw the money you put in, do you lose the money that the company put in, in other words, does it go back to the company and you forfeit it?

My other concern is: Won't that 4 digit monthly pension be dependent upon your's and the company's contribution? And, given the size of your contribution, a 4 digit monthly pension sounds unrealistic. I would suggest you sit down with a counselor and make sure you have a good understanding of what you've got and what you've got coming with regards to that pension money.

Am pleased to know that another job was quickly secured! Bless you.

[Mezuzas]

If the dollar crashes like so many think it will, it'd be better to get that pension and put it towards debt now. People's retirement will be gone anyway.

[Eternally]

These Pension companies take as much time as they possible can to give up any money... they're not in business for you but for themselves, make no mistake about it... and it doesn't take much interaction with one of these companies to get the idea that they're not very honest.

One concern that comes to mind is: If you withdraw the money you put in, do you lose the money that the company put in, in other words, does it go back to the company and you forfeit it?

My other concern is: Won't that 4 digit monthly pension be dependent upon your's and the company's contribution? And, given the size of your contribution, a 4 digit monthly pension sounds unrealistic. I would suggest you sit down with a counselor and make sure you have a good understanding of what you've got and what you've got coming with regards to that pension money.

Am pleased to know that another job was quickly secured! Bless you.

The Employee Contribution amt is available to cash out when a person is laid off. It will not affect the money values that are there by the employer, and it will be over $1000 mo when he retires at 65.

The Employee contribution amount is small because it was in the 70's during a formerly bought entity that employees contributed at all... the plan has not had employees put anything in for years.