| Within the Department of Labor, the Pension
and Welfare Benefits Administration is the federal agency
responsible for the regulation of private pension plans.
Eligibility for retirement benefits is determined by
whether an individual is vested or not. Vesting is the
point at which a participant's entitlement is secure, and
is usually based on length of service. Prior to the
mid-1970s, most private pension plans required 20 years
before vesting occurred. The average time period
decreased to about 10 years in the mid-80s, and currently
stands at about 5 years. Every private pension plan's rules
of eligibility are contained in a Summary Plan
Description (SPD), which is given to workers when they
join. SPDs have been required since 1974, with passage of
the Employee Retirement Income Security Act (ERISA).
Generally speaking, employees who left their jobs after
1975, the effective date of ERISA, have more rights and
resources available insofar as finding and claiming
benefits.
There are
many possible scenarios that must be considered when
searching for unclaimed pension benefits. The original
company could have reorganized, been acquired, or
dissolved, and the plan transferred or terminated. If
terminated, fully funded plans may have been replaced by
an annuity, transferred to a bank or mutual fund
administrator, or turned over to the PBGC.
To find
out if a company no longer in existence merged with or
was acquired by another, go to:
Stock
Search. For
assistance tracing on unclaimed pension benefits go to:
Lost
Pension Search
|
