The Pension Action Center (PAC) recently helped a man named Jerry, who worked for a communications business in the 1980s and 90s. He worked for 9 years and became fully vested in his pension after 5 years of service. After he left his position, the business was bought by a larger company. Jerry was told that his benefit was being held with the larger company, but was told they had no record of him when he tried to initiate his retirement benefit. The larger company also denied that it administered Jerry’s pension plan.
PAC contacted the Pension Benefit Guaranty Corporation (PBGC) to request additional information. The PBGC confirmed that several smaller plans had merged with the larger company’s plan, and that company was the likely administrator for Jerry’s plan. PAC contacted the larger company again with this information, and they responded that Jerry did not meet the requirements to receive benefits under the plan.
PAC assisted Jerry in receiving an L-99 Notice of Potential Private Retirement Benefit from the Social Security Administration, and submitted a copy of that document to the plan, asking the plan administrators to provide a detailed explanation as to why Jerry was not due benefits under the plan. After reviewing PAC’s inquiry, the company agreed that it was the sponsor of the plan and directed its administrator to begin the election process. A little over two weeks later, Jerry received his election paperwork, providing him options to receive either a single-life annuity of $600 per month or a joint-and-survivor annuity of $517 per month. The full value of this benefit is $136,853.