In California, similar to other states, pension plans are typically associated with someone’s employment. With these plans, employers take part of their funds and invest them on behalf of a worker.
Once that worker retires, they are eligible to receive a certain amount of money in addition to the amount that the investment earned. These funds, which include a certain sum and the investment income, are referred to as retirement income. In many situations, this income is guaranteed until the worker’s death.
Pension plans are similar to retirement plans, even though there are some differences between them. There are retirement plans that are available through an individual’s employer, for example, a 401k.
These plans put the responsibility upon the employee to contribute to their retirement plan. In addition, the employee will be responsible for choosing their own retirement investments.
Pension plans, on the other hand, guarantee the worker a certain amount of income monthly when they retire. With pension plans, the investment risk is held by the employer and not the worker.
To find out more about pension plan types and other retirement plans in California, an individual should schedule a legal consultation in California.
What Are Pension Plan Disputes?
The most common types of pension plan disputes that come up involve payments to retired individuals with pension funds. These disputes often involve the retiree and their former employer but may also involve other parties.
Common examples of pension plan disputes include:
- A dispute about the taxes, insurance, and other related matters
- A dispute about the denial of pension benefits
- A disagreement about the timing of a pension payment or the amount of a pension payment
- These may arise because of misinformation related to the employer’s ability to offer the benefits an individual should receive based on their years of service, salary, or other factors.
- Employers often calculate the benefits a worker receives based on their age, position, and years of service.
There are also retirement benefit disputes that may apply to pension plans. These may involve forced or premature retirement that can affect the status of the worker.
Employment discrimination issues may also be present in a pension plan dispute. In some situations, pension plan benefits are shared with other individuals, such as a spouse.
Because of this, pension plan disputes can also be involved in other legal proceedings, for example, divorce. Pension plans may also be involved in distribution of a decedent’s property.
Many employers allow the worker to choose their beneficiary of their retirement plan. Typically, the individual will only be allowed to choose an immediate family member, such as a spouse or child.
A California pension plan attorney can help with any type of dispute resolution. These professionals understand the laws that govern retirement benefits and pensions and will know how to proceed in any situation.
How Are Pension Plan Disputes Resolved?
Pension plan dispute resolutions have to follow the statutes that govern pension plans. This includes the Pension Protection Act of 2006 (PPA), which requires an employer to take certain precautions to make sure that the pension plan is properly funded. The PPA protects employees as well as their retirement funds by enforcing provisions with requirements for companies when their pension plans are underfunded.
One additional statute that governs pension plans is the Employee Retirement Income Security Act (ERISA). ERISA was intended to reform retirement and pension plans for individuals working in the private sector as well as to prevent abuse of the plans by administrators.
ERISA provides minimum standards for pension plans, guaranteeing that they cannot be unfairly denied or revoked. The PPA and ERISA both provide protections for employees when a plan cannot pay all of the benefits they are entitled to.
If a dispute does arise, an individual often has to start the resolution process through their employer’s human resources department. If this does not fix the issue, a retirement plan lawsuit may be filed so the employee can recover their lost benefits.
What Are the Claim Procedures for a Pension Plan Dispute?
ERISA provides that every pension plan has to have a dispute claim procedure. After an individual files their claim, they must receive a written decision about their claim within a reasonable amount of time.
What is considered reasonable will depend on the type of plan and the nature of the claim. If an individual’s claim is denied, they must be informed why as well as how benefits are determined.
Once an individual receives a written decision about their claim, they have 60 days to file a written appeal. How and where an individual can file an appeal is explained in their pension plan summary.
If an individual’s appeal is also denied, they can pursue a case in a state or federal court. It can be helpful to involve a pension plan dispute attorney as early in the process as possible, as it will increase your chances of obtaining compensation.
An individual’s attorney can explain the details of their plan and the processes for filing a claim and an appeal. A lawyer can handle the claim, appeal process, and lawsuit, if necessary. If there are numerous individuals who have been similarly affected, a class action lawsuit may be filed.
In these cases, the legal remedies may include recovering the lost benefits and the employer being required to revise their pension policies. If the issue involves fraud or misrepresentation, an employer can face criminal charges.
To find out more about pension plan disputes and their possible resolutions, it is important to consult with a California lawyer.
Do I Need a Lawyer for Help To Resolve a Pension Plan Dispute in California?
If you have any type of question, concern, or dispute related to your pension plan, you should consult with a California workers’ compensation lawyer as soon as you can. Having a lawyer’s assistance can provide you with the best chance at a quick resolution for your issue.
A pension plan dispute lawyer can help with issues involving beneficiaries, benefit calculations, and benefits. Your pension plan attorney will also represent your interests and protect your rights in court. This means, if you have to file a lawsuit, your California pension plan dispute attorney will be there with you each time you are in court.
Your California pension plan lawyer may also be able to help you negotiate with your former employer to resolve your issue and avoid the courtroom altogether. You can use LegalMatch’s free lawyer matching services today in as little as 15 minutes to find a pension plan dispute attorney in your area of California, whether you just have questions or need representation in a lawsuit.
Once you have submitted your question or issue on the LegalMatch website, you will begin to receive responses from member lawyers in your area of California who are pre-screened, licensed, and ready to help you with your pension plan issue or concern. You will be able to see each lawyer’s educational background, fee schedules, and reviews.
Many member attorneys will give free consultations to prospective clients, which allows you to meet with several different California lawyers before deciding who best fits your needs and budget. It costs nothing but a few minutes of your time to get started finding the legal assistance you need today with LegalMatch.com.
