My employee handbook says I will be fully vested in 5 years. What happens if I leave this job after just 1 year? I totally skipped the day we talked about pensions in my finance class.
2007-07-18 09:03:53 · 7 answers · asked by Alli 4 in Business & Finance ➔ Personal Finance
I wonder if your company really has a profit sharing plan instead of a pension plan. If it is a profit sharing plan and you have made no 401(k) contributions, then you most likely have not been there long enough to vest in any contributions meaning you get nothing. However, you need to ask your H.R. department for the most recent copy of your participant statement. If the statement shows a vested balance, then you can either roll it over to an ira or possibly your new employer's plan or take a lump sum distribution (thats a bad idea because if you are less than age 59 1/2 you will be hit with a 10% penalty as well as have to include the distribution in your income for the year.)
Also, ask your h.r. department for a copy of the "Summary Plan Description" or SPD. You have a right to a copy of that document which is supposed to be a summary of the plan in laymen's terms.
2007-07-18 10:49:10 · answer #1 · answered by jlcintexas 3 · 0⤊ 1⤋
You may or may not lose all of it, depending on the plan. Some pension plans provide for partial vesting leading to full vesting after a period of time. My recommendation is that you get and read a copy of your company's pension plan (all employees have a right to this document). Note the parts you do not fully understand and get some help from a friend or maybe your finance teacher to help you assess your situation. Generally, it's best to hang on until full vesting, even if your plan provides for partial vesting.
2007-07-18 16:13:02 · answer #2 · answered by Tomel 3 · 0⤊ 0⤋
Usually pensions vest some every year. Like, it could be, 20 percent a year for five years. But it could be based on a calendar year or on your anniversary date. You really need to check an employee handbook, or the the HR department, or with the benefits department. Do you receive statements in the mail? Maybe there's an explanation with the statements.
2007-07-18 16:10:07 · answer #3 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
It generally reverts back to the company.
2007-07-18 16:09:54 · answer #4 · answered by fuzzykitty 6 · 0⤊ 0⤋
sometimes you can roll it over into your next job but you lose a considerable amount
2007-07-18 16:12:31 · answer #5 · answered by bella36 5 · 0⤊ 0⤋
You lose all of it.
2007-07-18 16:07:35 · answer #6 · answered by sortaclarksville 5 · 0⤊ 0⤋
You lose it.
2007-07-18 16:35:34 · answer #7 · answered by Kaye00 1 · 0⤊ 0⤋