ABA Family Legal Guide

Law and the Workplace

Leaving a Job

Pension Plans

How does an employee file a claim for benefits?

Each pension plan specifies the claims procedure. Generally, a vested participant is eligible for payments from a pension fund when he or she reaches the age of sixty-five (or the normal retirement age specified in the plan) or upon leaving the company. Most pension plans require the participant to file a written claim in order for payments to begin. Within 90 days (which can be extended to 180 days), the plan administrators must either begin payment to the participant or notify the participant in writing that the claim is denied.

If a claim is denied, the participant can appeal that decision. Some plans provide for arbitration as a means of appeal. When arbitration is required, the participant must use the mechanism. The denial of a claim eventually can be challenged in court by filing a lawsuit under Employee Retirement Income Security Act (ERISA).