Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, May 1, 1995 TAG: 9505050006
SECTION: MONEY PAGE: 6 EDITION: METRO
SOURCE: JANE BRYANT QUINN WASHINGTON POST WRITERS GROUP
DATELINE: NEW YORK LENGTH: Medium
Miscalculations abound in pension checks. Profit-sharing plans and company-run 401(k)s are especially vulnerable, says Robert Lebenson of Lebenson Actuarial Services in Las Vegas, because the payouts don't have to be double-checked by outside experts. They might be figured by payroll clerks who don't know a lot about how the plan works. Traditional pensions are double-checked, but even there mistakes are made.
If you suspect that you're being shortchanged, here are the places to turn:
The administrator of your pension fund. This should always be your first step. The administrator is obligated by law to reply to your written questions about how your benefit was figured. If you think you're owed more, you can file a claim and, if denied, an appeal. When getting a lump-sum distribution, ask for the whole calculation, said G. Patrick Byrnes, president of Actuarial Consultants Inc. in Torrance, Calif. The wrong birth date or hire date can make a difference.
Your own statements. By federal law, workers are entitled to annual statements, showing how large their pension has grown and how much of it has vested (``vested'' means money that's yours to keep, even if you leave your job). If you don't get a statement automatically, request it in writing. When you enroll, you should receive a summary copy of how the plan works. You're also entitled to an annual financial report, showing the fund's investment results.
Check these statements every year to be sure they reflect your proper wages and the number of hours you worked; any contributions you made to the plan (cross-check these with the contribution shown on your W-2 form); and whether your employer made any contributions due. Keep these documents permanently on file, in case you need them to fix mistakes.
An actuary. Ask your library for the Enrolled Actuaries Director of the American Academy of Actuaries and start calling members, looking for someone who takes individual cases. If you have all your records, he or she can check traditional pension plans in just a few hours (profit-sharing and 401(k) plans take longer). You have a strong case when an actuary finds something missing. Probable cost for traditional pensions: a few hundred dollars, although circumstances vary.
A lawyer who specializes in pension cases - the place to turn if the actuary can't get you paid. Lists of pension lawyers are available from the American Association of Retired Persons and the Pension Rights Center. Lawsuits are expensive, however, unless someone takes your case on a volunteer basis. You probably can't afford to pursue anything but a major claim.
A firm doing business as the National Center for Retirement Benefits in Northbrook, Ill., charges nothing to check your pension benefit. If it finds a substantial error, it negotiates with your company and takes a stiff 50 percent of any extra money it collects. It doesn't take any cases to court, however; nor does it analyze union or government pensions. Normally, NCRB works with people due $20,000 or more. It does preliminary screening by phone; call (800) 666-1000.
The American Association of Retired Persons. The AARP can't solve individual pension problems, but it will send you a list of lawyers in your state who do pension cases (no endorsement implied, the AARP says). A useful booklet, ``A Guide to Understanding Your Pension Plan,'' is free from AARP, Worker Equity, 601 E St. N.W., Washington, D.C. 20049 (ask for AARP Stock Number D13533).
The Pension Rights Center. This small, underfunded group is backlogged with appeals for help and not taking new cases, but it will refer you to pension lawyers in your state; call (202) 296-3776. It also offers several valuable publications, including ``Where to Look for Help With A Pension Problem,'' $8.50 from Pension Publications, 918 16th St. N.W., Suite 704, Washington, D.C. 20006.
The U.S. Labor Department's Pension and Welfare Benefits Administration. The understaffed PWBA won't recompute your benefits or, in most cases, intervene with your employer. But do call a Labor Department field office (in the Yellow Pages under Government) if you suspect that your pension-fund money is being mishandled. You can get the free booklet, ``What You Should Know About Pension Law,'' publication number 365B, from the Consumer Information Center, Pueblo, Colo. 81009.
by CNB