10 Common Causes Of Errors In Pension Calculation
- All relevant compensation, such as commissions, overtime, and bonuses, (if these were to be included in your plan) was not included in calculating your benefits.
- The calculation was not based on all your years of service with the company, or all work within different divisions.
- The plan administrator used an incorrect benefit formula, such as the wrong interest rate.
- Plan used wrong social security data in calculating your benefits.
- Basic information such as birthdate, and, or social security number was incorrect.
- Your company merged with another company or went out of business, and there is confusion over which pension benefits you qualify for.
- Assets in your account were improperly valued.
- Your employer failed to make the required contributions on your behalf.
- Basic mistakes were made in the mathematical calculations.
- You failed to update your personnel office with changes (marriage, divorce, death of a spouse) that may affect your benefits.
Consumer Tips For Safeguarding Your Pension
- Know your pension plan. Obtain and review your Summary Plan Description (SPD), the rulebook for your pension.
- Review your individual benefit statement and individual account information. Know what your accrued and vested benefits are.
- Maintain a pension file. Keep records of where you’ve worked, dates you’ve worked there, your salary and any plan documents or benefit statements you’ve received.
- Notify your plan administrator of any changes that may affect your benefit payments (i.e., marriage, divorce, death of a spouse).
- Know the person in your company who has information about your pension plan and can give you plan documents.
- Know how the merger or acquisition of your company will affect your pension benefit.
- Know your pension rights. Request information on your pension rights and how to protect your pension.
- Contact the Department of Labor’s Employee Benefits Security Administration if you have any additional questions about your rights under the law.
Source: Department of LaborLwww.dol.gov