Nonprofit helps retirees understand pension benefits

Question: How many retirees are not getting the full pension they are owed and why is that?

Answer: It is estimated that at least 1 in 10 workers is shortchanged. Most workers never detect the shortage or recover the lost income because the task of understanding their pension plans and asserting their rights is overwhelming. There are several reasons why this may happen, from processing or mathematical errors to the plan lacking accurate employment records to the plan using incorrect formulas. Reviewing your plan document and requesting details related to your benefit calculation may help to determine if you are receiving the full benefit that you earned. You can also call our office for assistance.

Q: What is the Western States Pension Assistance Project?

A: We are one of seven regional pension counseling projects funded by the U.S. Administration on Aging. The project provides free pension counseling and assistance to residents of California, Arizona, Nevada and Hawaii. We also assist nonresidents with questions about retirement benefits earned in those states. Our goal is to protect and promote the retirement security of workers, retirees and their families and we have helped many people obtain the retirement benefits they earned. 

We help participants track down and claim retirement benefits from past employers, understand survivor and divorce benefits, determine whether benefits have been correctly calculated, and enforce their rights when it comes to their retirement plans. 

Q: What do you charge clients?

A: We are a nonprofit law office and all of our services are provided free of charge. We do not have age or income restrictions.

Q: Where do you get your funding?

A: We are primarily funded by a grant from the U.S. Administration on Aging. We also receive voluntary donations.

Q: What are the most common mistakes people make in regards to their pension benefits?

A: People do not retain documents related to employment that may be helpful should problems arise at retirement. Many participants do not understand the terms of their plans and may make decisions that are not in line with their wishes. Participation in union plans can sometimes be confusing to a participant who has worked with different employers but where some employers may not be covered by the pension plan.

Q: What can retirees do to make sure they are getting all the pension benefits they have earned?

A: Retain tax records and other documents related to employment. It is also important to request and retain copies of summary plan descriptions (SPDs) and plan documents. The plan document in effect during a participant’s last hour of service contains the applicable rules for her retirement benefit.