social security and pension

[Guest lskin]

Why would a person get a letter from social security letting them know they might be entitled to a pension? And if the company that they mentioned is no longer in business would you know of how they could find out if they are entitled to a pension?

[JanetM]

We plan sponsors report who has future benefits. Wast he business bought by someone else? Was this a 401k plan or defined benefit plan. If defined benefit plan you can start with the PGBC and see it they took it over. If it was 401k or profit sharing you most likely got you money years ago and no one told the SSA.

[mwyatt]

The mechanics are that after a certain period of time after a participant terminates employment, their benefit or account balance is reported on the Schedule SSA filed with the annual Form 5500. If a terminated participant, subsequent to the filing of the Schedule SSA, receives their benefit, they are reported again as having been paid and their name is taken off of the Social Security records. The SSA, in future years, will send a letter to an individual near their retirement age if these records still indicate that benefits may still be due from a plan.

An admirable intention, for sure, but many things can go wrong. Administrators change over time, and participants who were paid out aren't reported as such on a future SSA (anyone in the business can recall the joy of gettin those calls from people who were paid out 20 years ago, but cancelled checks aren't available to document the payment). Of course, as Janet pointed out, plans can be transferred to new sponsors, and an aggravating paper trail awaits those who are properly due benefits. The PBGC reference could help IF AND ONLY IF the plan in question was terminated and properly reported to the PBGC.

What exactly are your circumstances? There are non-profit groups (I'm involved with one in the Boston area) that can help participants in getting the benefits entitled to them. Here's a link:

New England Pension Assistance Project