Pension Plan Disputes in Florida

Pension plans are often a benefit of employment in the public and sometimes in the private sector as well. In the past, they were quite common in the private sector. Many people worked for private companies that offered them pension benefits when they retired. Today, they are much less common in the private sector, but they are still often a benefit of employment for government or government agencies.

A legal consultation in Florida with a Florida lawyer would help a person understand pension plans, especially their own if they have one.

To establish a pension plan, an employer dedicates a portion of its revenue to investing in a fund on behalf of their employees. Once an employee retires, they usually receive a specific amount of money monthly for a specified period of time, possibly for the rest of their life from their former employer’s pension plan.

A pension plan is basically a way for a private company or government employer to provide employees with a guaranteed income for their retirement. Many retirement plans that are available through employers nowadays, such as a 401(k) plan, are savings plans.

These alternative plans are funded mostly by employees saving portions of their salaries in special accounts. The amounts saved are not taxed as income when received by the employee. Rather taxation is deferred until the money is withdrawn by a person after they retire and reach a certain age.

Employers may make contributions, but the majority of the funds come from employees’ salaries and the income they earn on their savings by investing the funds in various investments offered by the employers’ retirement plans.

Because the employee is responsible for choosing how to invest their retirement savings, there is a risk that they can experience losses as opposed to gains.

Pension plans guarantee an employee a fixed amount of monthly income in retirement. Additionally, all investment risks fall to the employer, instead of the employee. This is the main advantage of a pension plan benefit – it is a guaranteed monthly income on which a retired employee can depend in retirement.

The Florida Department of Financial Services regulates pension plans, including Florida’s public employee retirement systems. The Florida Retirement System (FRS) is a public pension plan for the employees of the State of Florida and other local government agencies. It is regulated by state statutes.

In addition, pension plans offered by pirate employers must comply with the federal Employee Retirement Income Security Act (ERISA), which sets standards for private pension plans and requires that they comply with ERISA. Among other requirements, ERISA obligates plans to provide participants with information about a plan’s features and how it is funded.

What Are Pension Plan Disputes?

The most common retirement benefit disputes regarding pension plan types involve questions about the payments made to those who are retired by a pension fund. Disputes may have their source in a conflict between a retiree and their former employer and may be about such issues as the following:

Some of the most common examples of pension plan disputes include but may not be limited to:

• Disagreement regarding the timing of pension payments
• Disagreement about the amount of the payments due to a retiree from a pension plan
• Disputes over taxes, insurance, and/or other related matters
• Disputes as to whether an employee has earned a pension benefit and if so, what the terms are.

Such issues may arise as whether an employer has retired prematurely or has been forced into retirement with an effect on their retirement benefit or their eligibility to receive a pension.

A retiree may be legally obligated to share a pension benefit with other parties, such as a former spouse or significant other. So a pension benefit could lead to pension plan disputes connected to other legal proceedings, such as a divorce. Another example would be whether the retiree named a beneficiary to receive the pension or a portion of it when they pass away.

A pension plan dispute lawyer can assist in the dispute resolution process. As they have a better understanding of the laws governing pensions and retirement benefits, as well as the laws governing property distribution, they will know the best way to proceed.

How Are Pension Plan Disputes Resolved?

Any resolution of a pension plan dispute must comply with the specific federal statutes that govern pension plans. The first such statute is the Pension Protection Act of 2006, or “PPA.” In short, PPA requires employers to take certain precautions in order to ensure that their pension plans are properly funded, so they can provide the benefits they promise. The PPA exists to protect employees and their retirement.

As noted above, ERISA also requires that administrators provide employees with information regarding the general features of the plan and how it is funded. This also includes information about vesting of the benefit, as well as the process participants can use to make claims and appeals. ERISA has set standards for pension plans which guarantee that pension benefits cannot be unfairly denied or revoked.

These laws work together to create specific guidelines that are to be followed by pension plan administrators. Additionally, these laws provide some protections for employees if certain employers’ plans cannot pay all of the benefits to which employees are rightfully entitled. Employers do sometimes go bankrupt, and this can have a negative effect on their pension plans.

The PPA and ERISA maintain reporting requirements which help ensure compliance, and therefore reduce the likelihood of disputes.

Should disputes arise, routes for resolving those disputes generally include following legally required dispute resolution processes that are internal to a company, e.g., through the human resources department. In some cases, the dispute can only be resolved through a retirement plan lawsuit filed by the employee in order to recover lost benefits.

What Are the Claim Procedures for a Pension Plan Dispute?

The first thing an individual wants to do is review their plan documents. They would want to identify any specific provisions that seem to apply to their situation. They would contact the plan administrator and communicate their issue as clearly as possible, offering evidence to support their argument.

If this does not bring about a resolution, an individual should submit a formal complaint to the plan. They would follow the procedures specified in the plan documents.

An individual who is or was a public employee may contact the Florida Division of Retirement for guidance regarding a public pension. If an individual’s dispute is with a private pension plan, they would want to contact the Employee Benefits Security Administration in the federal Department of Labor for assistance with a claim. Of course, a person would be assisted by consulting a Florida pension plan dispute lawyer.

Do I Need a Lawyer for Help To Resolve a Pension Plan Dispute in Florida?

If you are involved in a dispute regarding a pension plan benefit, you want to consult a Florida workers’ compensation lawyer. Your lawyer can review your plan documents and the facts of your dispute. They can work to negotiate a resolution and if efforts fail, can represent you in court if a lawsuit becomes necessary.