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Women and Pensions... Page 2

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6. Do you know what happens to your pension if you retire early? If your traditional plan allows you to collect pension benefits before "normal" retirement age (65 in many plans) your benefit may be reduced since you will be getting benefits for a longer period of time.
   
   
7. Do you know what happens to your pension if you change jobs? If you have not worked long enough to qualify for benefits, you will lose your pension. If you qualify for benefits, some plans will keep your pension until you reach retirement age. Others will allow you to take your money out in a lump sum. If you take the money, you will have to pay a tax penalty unless you roll the money over into another pension plan or IRA.
   
   
8. Do you know what happens to a pension if you or your spouse dies? In a traditional private pension plan, you may be entitled to receive a benefit from your spouse's plan when he dies. This "survivor" benefit is automatic unless both spouses agree, in writing, to give it up. If you are in a government plan or a defined contribution plan the rules may be different.
   
   
9. Is your pension insured? Most traditional company and union pension plans are insured by the federal government through the Pension Benefit Guaranty Corporation (PBGC). PBGC pays benefits up to a maximum guarantee if plans fall short. Plans where you have an individual account and government plans are not insured.
   
   
10. Is your pension insured? Most traditional company and union pension plans are insured by the federal government through the Pension Benefit Guaranty Corporation (PBGC). PBGC pays benefits up to a maximum guarantee if plans fall short. Plans where you have an individual account and government plans are not insured.
    
    
11. Do you have pension information from all your jobs? If you earned a pension at a previous job, contact the plan to get information on your benefit. Also, when you apply for Social Security, you can find out what private sector pension benefits you may have earned. Finally, contact PBGC for help in locating your benefits from a private sector plan that no longer exists. Be sure to keep all employment and pension-related records with other important papers.

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