Sweet! Eligible for Pension I didn't know about!

[joenali]

Years ago my mom worked at a grocery store that was in a union. A few weeks ago she came across some old paper work that said she was eligible for a pension because she was vested. She told me "You better see if you are eligible too!" I worked at a uinion grocery store for several years but didn't think I worked long enough to be vested (5 years).

I called today to see if I had a pension. And sure enough I was vested. If I take my pension early it's a whole $50 a month, if I wait until I turn 65 it's $140 a month.

Unfortunately, I can't roll over any of this money into my current retirement account.

[Deleted]

I think there are ways around rolling it into your own accounts aren't there? I had one a while back that I "cashed in" and then added back the money they deducted for taxes and put it in my own IRA (it was a small amount which yours sounds like also). I would ask for a copy of the plan doc.

[LoveTrains]

Could you take it now? I honestly wonder if it might be more MM to take $50/month now ($600/year) instead of waiting until you are 65. $600/year x 30 years (that is assuming you are 35) = $18,000.

[joenali]

I can't take it early until 50. It has to do with how current employees fund the pension. And for that reason it can't be touched until you meet the requirements.

[niq]

That's awesome! As annoying as it is, I would just let the pension exist separately rather than cash it out and roll it into retirement savings. If you can't cash it out until you hit 50, you'd end up having to put it in lower-risk investments anyway, right? So just keep the $140/month in mind for retirement planning.

[Deleted]

Yay for $ though!

[Deleted]

Most union grocery stores you are vested at 5 years. At least that is how the one I work at works. Yay for money.

[joenali]

Aug 2, 2012 12:56:36 GMT -5 @sounderschick said:

Most union grocery stores you are vested at 5 years. At least that is how the one I work at works. Yay for money.

Yeah, it was so long ago, I couldn't remember if was actually 5 years or just shy of 5.