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Retirement
Women and Pensions |
What Women Need to Know and Do
While all workers need to save more for retirement, women face additional challenges
because they have lower earnings, experience higher job turnover, and are employed in
industries with low or no pension coverage.
Pension Checklist for Women:
- Does your employer have a pension plan?
Employers are not required to have a
pension plan. You need to find out from your employer if a plan is offered.
- Do you know what type of plan it is?
There are two basic types of pension
plans. A traditional plan promises a specified pension benefit at retirement usually based
on the years you worked and your salary. A defined contribution plan, such as a
"401(k) plan," maintains separate accounts for each person and retirement
benefits are based on the amount in your account.
- Are you included in the plan?
Pension plans do not have to include every
worker. Some jobs may be excluded from the plan and part-time workers may not be covered.
Check with your plan administrator (the person running the plan), personnel office or
union representative to make sure that you are a plan member or to find out how to become
one.
- Have you worked long enough to earn a pension?
Generally you must work five
years under a plan to qualify for benefits, although some types of plans still require ten
years of work to earn a benefit. Some plans require less than five years. Ask the person
running your plan for a summary plan description which describes the plan and its
requirements.
- Do you know how much your pension will be?
The summary plan description should
tell you how your benefit will be calculated. Your employer may give you or you may
request an individual benefit statement showing the value of your pension benefit. The
individual benefit statement should show the benefits you have actually earned to date and
a projection of your benefit at retirement.
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