At age 70, “Bob,” whose wife had recently passed away, began a quest to locate his surviving spouse benefit from his late wife’s pension. When Bob contacted the plan of his late wife’s pension, he was told that his wife had received a lump sum payment and that Bob had signed a waiver. Therefore, Bob was not entitled to a surviving spouse pension benefit.
Bob did not recall signing a waiver, nor did he recall his wife taking a lump sum payment, so he called the plan again. This time he was told that he was entitled to a spousal benefit of $500 a month or a lump sum payment of $8,900. Bob requested a pension application but never received one. He continued to call the plan and each time he called, the representative told him different information. In addition, the plan never sent him a pension application. Bob was getting frustrated, so he contacted the Mid America Pension Project for assistance.
The attorney who took his case sent an inquiry letter to the plan to determine the amount of Bob’s pension benefit. The plan did not respond, so the attorney sent a second letter to the plan’s legal counsel. Upon receiving the letter, the plan immediately contacted the attorney. It turns out Bob was entitled to not one but two pension benefits. One benefit was a monthly annuity of $518 and the other was a lump sum benefit.
The plan immediately paid the monthly benefit of $518. However, there was still a question as to the amount of the lump sum benefit. Bob had been told that it was either $8,000 or $10,000. The attorney again reached out to the plan who investigated the matter. Ultimately, the plan determined that it owed Bob $518 as a monthly surviving spouse pension benefit and a lump sum payment of $12,000.
When Bob ultimately received the money, he told the attorney he was grateful for the help.
If you have questions about your pension plan, contact our team of attorneys at the Mid America Pension Project:
Toll Free Number: 866-783-5021
Email: pensionrights@metroaging.org