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Retirement Plans: Know Your Rights
Dear Jeff:
The company where I worked for 10 years was recently purchased by a large public company. While my job was downsized, this public company offered me another job which I accepted. I now contribute to this public company's 401(k), but I have not heard anything regarding the old company's 401(k) and it has been over a year. What are my rights regarding the old 401(k)?
Jeff Says:
I recommend you talk to the employee benefits coordinator or human resources director about the status of your previous 401(k) plan. He or she should be able to provide you with detailed information about your options. If you personally made contributions to the plan, then you are immediately vested with respect to those contributions. This means you have the right to roll-over those assets upon your retirement or termination with the company. Whether or not you have that right as a result of the takeover will depend on the plan document and the terms of your company's purchase.
The plan document will contain specific provisions about your rights with respect to contributions made by your employer. It should also dictate how the plan should have been handled when your company was purchased by a larger company. The plan could have been terminated, in which case the very complex pension plan termination laws would come into play--but your rights would certainly be protected. Your benefits coordinator can provide answers to these questions that will reveal your options. Remember: you certainly have rights with respect to your old plan.
Get the 411 on 401(k)s
Learn how to spot a good (and bad) 401(k), talk to a benefits manager, and manage your account. Visit the ThirdAge 401(k) guide: Your Personal 401(k) Handbook.
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