Who gets the leftovers from a terminated pension plan?

Need Professional Help? Talk to a Lawyer.

 

Question:

My wife's employer has just changed to a defined benefit pension plan. If the plan terminates before my wife reaches retirement age, what happens to the contributions left after she is given credit for her vested amount? Does she get them -- or does the employer?

Answer:

All employees become 100% vested in their accrued benefits if a pension plan is terminated. On occasion, unallocated amounts may remain in the plan account at termination -- generally as a result of an erroneous actuarial computation. These amounts generally will revert to the employer, but the employer will pay a penalty on the reversion.

Get Informed

Empower yourself with our plain-English information

Do It Yourself

Handle routine tasks with our products

Find a Lawyer

Connect with a local lawyer who meets your needs

The fastest, easiest way to find, choose, and connect to estate planning lawyers

NOLO4:DRU1.6.8.11.20160427.37128