As part of the EBSA's National Hispanic Heritage Month education efforts, they have included retirement plan related Spanish language materials on their website at http://www.dol.gov/ebsa/newsletter/. In addition, there are also Spanish language videos on the newsletter website for those fluent in Spanish who might not speak the language. Great education efforts to share with friends and family!
Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.
Tuesday, September 25, 2012
Saturday, September 8, 2012
Participating in a Retirement Plan
On Monday, we commemorated Labor Day. The law that governs retirement plans, ERISA, was signed into law on Labor Day 38 years ago. I find it only fitting that we discuss participating in retirement plans this week. Due to the variety of retirement plans, participation can be an active or rather passive process. If you are in an defined benefit plan or any retirement plan that only allows for employer contributions and you are unable to direct plan investments, you may only need to complete a beneficiary form.
Regardless of your plan type, you should receive a Summary Plan Description (SPD), or a brief summary of the plan document written at a layman level, within ninety days of becoming eligible for the plan. If you direct investments, you will need to make a choice on an enrollment or investment election form. If you are able to make employee contributions, you will also need to make a choice on an enrollment form. Regardless of plan type, you will need to complete beneficiary forms. The form will determine how your vested benefit will be distributed if you die. Sometimes these elections will be on three separate forms or they can all be combined on the same form. As a result, terms other than investment election, beneficiary or enrollment form may be used by your plan administrator.
I would encourage everyone to participate if they haven't already. If you think you should be eligible and you haven't received any paperwork or instruction about how to sign up, a brief call to your benefits department may be useful. They should be able to help you out with signing up or advise you regarding when you should be eligible. If you are not expected to meet eligibility, for example due to hours worked, they should also let you know that. Many employers gladly discuss the plan and/or give out SPD's before participants are not even eligible yet, if an employee is interested. They are not required to, but they often want to share the great benefits that you may qualify for in the future.
Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.
Regardless of your plan type, you should receive a Summary Plan Description (SPD), or a brief summary of the plan document written at a layman level, within ninety days of becoming eligible for the plan. If you direct investments, you will need to make a choice on an enrollment or investment election form. If you are able to make employee contributions, you will also need to make a choice on an enrollment form. Regardless of plan type, you will need to complete beneficiary forms. The form will determine how your vested benefit will be distributed if you die. Sometimes these elections will be on three separate forms or they can all be combined on the same form. As a result, terms other than investment election, beneficiary or enrollment form may be used by your plan administrator.
I would encourage everyone to participate if they haven't already. If you think you should be eligible and you haven't received any paperwork or instruction about how to sign up, a brief call to your benefits department may be useful. They should be able to help you out with signing up or advise you regarding when you should be eligible. If you are not expected to meet eligibility, for example due to hours worked, they should also let you know that. Many employers gladly discuss the plan and/or give out SPD's before participants are not even eligible yet, if an employee is interested. They are not required to, but they often want to share the great benefits that you may qualify for in the future.
Thanks for reading and have a wonderful day! Please be sure to subscribe to my blog and follow me on twitter @ChristineGurney.
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