ERISA addresses funding, vesting, reporting, disclosure and distribution issues regarding pension plans. Employers who establish pension plans are required to report information about the plan to the Department of Labor and provide this information to participants upon request. If a participant requests, the employer must provide a calculation of accrued and vested pension benefits.

This federal law requires pension plans to provide vesting to a participating employee after a specified number of years. Typically, a pension plan must become vested at 100% either after three years or under a two to six year graded schedule (20% a year for each year of service beginning with the end of the second year and ending with 100% after six years).

ERISA also regulates the manner in which a pension plan pays benefits. For example, a defined benefit plan must pay a married participant’s pension as a joint and survivor annuity that provides benefits to the surviving spouse unless both the participant and spouse waive the survivor coverage.

Issues that have been resolved through court cases regarding pensions include: Failure to pay a surviving spouse their survivor annuity due to a mistaken belief there had been a waiver of coverage; misrepresentations to participants as to the amount of benefits at the time of a merger of two companies; miscalculations as to benefits which resulted in either an underpayment or overpayment; and claims by terminated employees believing their termination was intentional and for the purpose of interfering with their attainment of vesting ( ERISA has anti-retaliation and anti-discrimination provisions).

If you have questions or concerns regarding your pension benefits please call Bogin, Munns & Munns at 407-578-1334.