Model letter for requesting benefit estimate

[Guest Excel]

1-9-2002

Re: Model letter for requesting pension benefit level for an anticipated retirement date

Thanks in advance for any help on this issue!

This is a problem that has come up at work.

A colleague has written to the company pension plan office repeatedly requesting a pension benefits estimate, and thus far has received no reply or acknowledgement.

The colleague plans to retire soon, and she is becoming concerned.

Is there a standard form letter for this sort of thing?

Is it available online - or would anyone care to send one along?

Could someone please please supply a list of necessary information (including any stock phrases or "terms of art") that would produce a legally binding request for a benefits estimate?

(We are hoping to avoid the use of the terms "fiduciary duty" and "not in good faith")

But a list of necessary information to supply, and things to be aware of and watch out for would be quite helpful (i.e. should we expect an immediate acknowledge of a request?).

Thanks in advance, and all links mentioned and books cited will be followed up on!

P.S. (I'm not a benefits professional, just a recipient).

[Mike Preston]

I'm not aware of any stock request that is published on the net. That, of course, doesn't mean one doesn't exist.

One thing your friend might try is copying the people listed in the Summary Plan Description on her next request. For example, if there is a listing of members of the Plan's administrative committee, copying those folks should get things going for her.

She should make sure that the letter she is sending is addressed to the Plan Administrator as defined in the Summary Plan Description.

This might come as a surprise, but there is no requirement under ERISA for the plan to provide her with a "what if" statement regarding her retirement benefits, although many plans will do so. The plan is required to provide her with a benefit statement of benefits accrued, but that need only be provided once in a 12 month period. Has she received such a statement in the last 12 months?

With all that said, here is a sentence that is somewhat cold, so you might want to lighten it a bit, depending on what impression you are trying to make:

"I am requesting a statement of my accrued benefits under the Plan pursuant to ERISA Section 101(a) and 105(a)."

It sounds like your friend doesn't want to use any language that might be perceived as negative. If she changes her mind, and wants to shake things dramatically, she might say something about the fact that a response is expected within 30 days.

If she wants to go even further, she might reference ERISA Section 502©(1), which authorizes her to ask a court to provide her with $100/day for each day that the company is late (that is, for each day beyond 30 days that they do not respond).

Please note that I'm not suggesting that she do anything to upset the people at her company's benefits department. So she might want to check with a benefits lawyer to review her requests to date to determine whether it is appropriate for her to remind the Plan Administrator of its responsibilities under ERISA.

She might also consider contacting the American Academy of Actuaries (http://www.actuary.org/palprogram.htm) to see if someone they refer might assist her with understanding her benefits. They might be willing to contact the company she works for and request a statement of her benefits on her behalf.

I wish her well.

[mbozek]

If the ee has not received a statement of benefits in the last 12 months then she should request assistance from the nearest office of US Dept of labor Pension And Welfare Benefit Administration (PWBA). It should be in the phone book under US government or on the U.S. Dept of Labors web site which might be found through a link on this cite. She should send copies of the previous requests with her request for assistance. Some HR depts have been cut back because of economic conditions and dont have enough staff to administer their plans. I was recently contacted by an employee who has been waiting 8 months for a statement of benefit amount which the plan admin has admitted he is entitled to receive. It seems that the person who was to handle the matter was transferred.

[BFree]

As a terminated employee due a benefit from a DB plan at retirement, should you receive annual statements? My former employer insists "No" - as the amount will not change from amount given at termination.

[MGB]

No pension plan is required to provide annual statements to anyone...active or terminated. ERISA only requires the plan administrator to provide information when requested in writing from the participant. If the participant has requested the same information in the prior 12 months, the request does not have to be responded to. However, a participant can request once each year and the plan administrator must provide the information, effectively creating an annual statement. However, this is only through requesting, it would not be automatic. There is only one truly automatic statement that must be provided and that is upon termination of employment. But that is only one statement.