ABOUT RETIREMENT PLANS

Pension scheme 

Private employers offer retirement schemes for their employees so they can have economic security in the future. Knowing what to expect in retirement, you must first understand how your plan and what benefits you will receive.

There are two general types of pension plans that most employers offer:

• benefit plan

Pension scheme is funded by the employer promises a specified monthly benefit at retirement. The benefits of this plan is calculated using factors such as age, salary, and number of years, he worked in the company.

• defined contribution

It is a plan funded by contributions your employer to your individual account in the plan. In this type of plan, you are responsible for choosing where to invest your contributions, and decide on how much can be deducted from your paycheck. Your employer will add to your account that match a certain percentage of their contributions. You will receive your account after retirement, reflecting the gains or losses on investments, the amount of contributions and fees on your account.

How you can participate and get your pension benefits.

After learning what type of pension scheme your employer offers, you should know how to participate in it to start making your retirement benefits.

• First, find out if it is within the group of employees covered by employer's pension scheme.

• Find out how you can participate and contribute to your plan when you start working in the company.

• Read the summary plan description of your plan.

• Learn how to start earning profits and size of your pension benefits will be. 

When will receive your pension?

By law, you will start receiving pension benefits when he reaches 65, or the age your plan considers normal retirement age or the equivalent of 10 years of service.

But to determine whether you can receive benefits, three things to consider:

• Introduction of receiving the benefits of the plans set out in the guidelines for federal legislation.

• Plans can choose when to begin paying benefits as expressed in the plan documents.

• An application for benefits is submitted to initiate payment of benefits.

By putting forward a claim for benefits, the law requires all plans to have a written procedure in the summary level. The paper also shows a guide on how to file a complaint if your claim is denied.

Some pension plans offered by employers, are covered by federal laws and guidelines in the Employee Retirement Income Security Act of 1975 (ERISA) and Internal Revenue Code. In addition, the plan rules and regulations contained in the summary level.

If the plan did not follow certain requirements of ERISA, or deny it, you can request legal advice from a lawyer for the pension benefits. A lawyer for retirement is an experienced lawyer who can best solve your problem or concern.