Why can't my client get his money right away from his former employer's defined benefit plan?

[Guest pah]

I am trying to find information on a defined benefits plan. I have a client who has been terminated from his position and he wants to rollover the proceeds of this retirment plan into an annuity and he has been told that he cannot touch the money that he has in the plan until he becomes retirement age.

We have written several letters trying to get a copy of the plan but to this date, they haven't given us the plan so that we can review it.

Our question is whether or not he can rollover his investment into another plan?

[WDIK]

You need the copy of the plan document you have requested to determine if any benefits are payable prior to retirement.

[david rigby]

Possibly an easier way to begin this "hunt for information" is to obtain and read a copy of the Summary Plan Description. The SPD should be written in non-legal language and should provide some (but not necessarily all) information related to this question.

Keep in mind that many (perhaps most) DB plans are designed to pay a benefit at retirement age, and payment prior to that time might be restricted to "small" benefits. Also note that the plan may have, but is not required to have, a lump sum option.

[Guest fredi]

Iam also trying to roll over my union pension funds to my IRA. My pension benefits summary plan description states, distributions from your deferred account are not permitted before retirement EXCEPT in the event of: 1-DEATH ,2-DISABILITY,or 3-TERMINATION OF COVERED EMPLOYMENT. I have not been amember nor have I worked out of this local for twenty three years,yet they tell me I canot move my vested funds to my IRA . I guess Iwill have to hire an attorney to help me with this.

[david rigby]

You may be eligible. I suggest starting by asking about the plan's definition of "termination of covered employment" (your phrase, the plan might not use that terminology).