Finances:  Pensions

This document is intended to provide general information on pensions and other financial matters.  It is not intended to provide legal advice.  For answers to questions regarding personal financial matters, consult with an attorney or accountant. 

YOUR PENSION
Many pension plans require 5 years of employment with the company before "vesting"--becoming entitled to future pension benefits. Retirement age and length of employment requirements will vary among various plans. Retirement benefit amounts are based on salary and years of service. Because women generally earn less than men and are more likely to move in and out of the work force, these factors tend to yield lower pension benefits for women than for men.

YOUR HUSBAND'S PENSION
Under federal law, you will receive a "survivor" benefit from his pension if your husband dies, unless you both decided not to have a "joint and survivor" annuity on his pension and you agreed to this in writing. Choosing this option provides a higher monthly benefit upon retirement, but leaves no pension income after his death. Minnesota law requires public pension plans to notify the spouse of any pension benefit options and both wife and husband must sign the option chosen.

PENSION RESOURCES
For questions about your pension, contact the administrator of the pension fund. Your employer can tell you who this is. For Minnesota public employees, call: Public Employees Retirement Association (651) 296-7460 or toll free 1-800-652-9026, or Minnesota State Retirement System (651) 296-2761.

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Last Updated: Wednesday, 23-Aug-2006 14:58:13 CDT (mmp)