Frequently Asked Questions...

...about Divorce and Pensions
...about Retirement Pension Benefits
...about Survivor Benefits

 
Frequently Asked Questions about Divorce and Pensions...

Q: I am in the process of getting a divorce. Can I get my spouse's pension even though he is not set to retire/or several years? Can my spouse get my pension? 
A: The answer to both questions is yes. Pensions are marital assets, and should be considered when marital property is being divided. You can ask for a portion of your soon-to-be-ex's lifetime annuity as well as survivor benefits. You must have a court order signed by the judge so talk to your attorney about this issue ASAP. Similarly, your spouse may ask for a portion of your pension as part of the property settlement. Pension awards are only enforceable if your attorney gets a court order and that court order is sent to the pension plan administrator. This order is called a Qualified Domestic Relations Order (QDRO). 
 
Q: I am divorced. Am I entitled to any of my ex-spouse's retirement benefits? 
A: In order to get a portion of your ex-spouse's pension benefits from a private company, your divorce decree must award you this and a QDRO must have been sent to your ex- spouse's pension plan administrator. This is also true of most government or public pension funds, but there are exceptions. Therefore, you should check with the pension plan administrator in these situations. If you were married for 10 years, you may be entitled to social security benefits based on your ex-spouse's earnings. If you have any questions or doubts about your rights to your ex-spouse's benefits, you should consult an attorney in the state where your divorce was granted. 


Frequently Asked Questions about Retirement Pension Benefits...

Q: I worked for a company in the late 1960s and early 19 70s. I know the company had a pension plan. Am I entitled to a pension from that company? 
A: Prior to 1975, when Congress passed the Employee Retirement Income and Security Act (ERISA), most pension plans had 2 requirements: you had to work 15 or more years and you had to be a certain age (at least 40 or older) when you left employment. If you did not satisfy both requirements, you lost your benefit. 
 
Q: I left my job in 1983 after working at that company for 12 years. Am I entitled to a pension? 
A: You very well could be entitled to a pension. After 1975, ERISA generally required pensions to be vested after 10 years. 
 
Q: Can I get my benefit early? 
A: Under most plans, normal retirement is 65. Some plans offer early retirement. The monthly benefit may be reduced if early retirement is taken. 
 
Q: I am 38 years old and need money. I worked for a company for six years in the late 1980s and early 1990s. I know that I was vested in the pension plan. Can I get a lump sum payment of my pension now? 
A: There is no legal requirement that pension plans offer a lump sum payout. Some plans do offer a lump sum option for smaller pensions. It depends on the terms of the plan documents whether this option is available and if so, under what circumstances. 
 
Q: I worked fulltime for a hospital from 1984 until 1990. Now I am 62 and would like to retire. Am I entitled to a retirement benefit from the hospital? 
A: You could be entitled to a benefit. In 1985 the Retirement Equity Act (REA), which was enacted by Congress, went into effect. Among other things, it reduced the number of years required to vest in a pension (usually 5 years). 


Frequently Asked Questions about Survivor Benefits...

Q: My deceased husband worked 20 years for a company before he died in 1974. Am I entitled to a survivor benefit? 
A: Probably not. Prior to 1975, most pension plans did not offer a survivor benefit. 
 
Q: My husband retired in 1984 and was receiving a pension when he died last year. Am I entitled to a survivor benefit? 
A: Maybe. After 1975, ERISA required pension plans to offer a joint and survivor benefit option to retirees. However, the monthly pension benefit would be reduced if the retiree, chose this option. Therefore, many employees did not choose this option. If your husband elected the joint and survivor benefit option at the time he applied for his benefit, then you are entitled to a survivor benefit. 
 
Q: My husband and I were separated when he retired in 1985 and when he died in 1998. He was receiving a pension when he died. Am I entitled to survivor benefits? 
A: You could be entitled to a benefit. After the Retirement Equity Act went into effect in 1985, a spouse could not waive the joint and survivor benefit without the written, notarized consent of his/her spouse. Therefore, you would have had to have signed a paper waiving your spousal benefit at the time your husband retired. If you didn't, you are probably entitled to a survivor benefit.