On April 27, 2012, the Pension Action Center wrote to the Internal Revenue Service to advocate for the pension rights of American workers and retirees. The Pension Action Center’s letter was prompted by a request from the American Society of Pension Professionals and Actuaries (ASPPA) that plans be relieved of their legal obligation to notify departing workers of their right to a pension. Click here to read the full text of the Pension Action Center’s letter.
Up until now, the Internal Revenue Code has required pension plans to give departing workers a notice if they have earned a right to a pension. This notice must state how much a worker will receive in pension benefits, how frequently those benefits will be paid, and who is responsible for paying them. ASPPA, which represents the interests of pension plans, sent a letter asking the IRS to relieve pension plans of this requirement.
Notifying departing workers of their right to a pension serves three important purposes. First, the notices inform American workers how much they will receive in pension benefits when they retire. Second, the notices provide clear evidence that a pension plan has deemed an individual entitled to pension benefits. Third, these notices help workers plan for retirement. The Pension Action Center urged the IRS to maintain its existing rule.
The Pension Action Center hopes that the IRS will agree with its interpretation of the law and continue to enforce the right of American workers to receive information about their pension benefits.
The Pension Action Center, part of the Gerontology Institute at UMass Boston, advocates on behalf of pension plan participants and strives to improve their economic security in retirement. The Pension Action Center houses the New England Pension Assistance Project, a pension counseling project funded by the U.S. Administration on Aging that represents workers and retirees in their claims for benefits. Because of its clear focus, the Pension Action Center is a one-of-a-kind organization in New England and is in a unique position to appreciate the importance of these pension notices to American workers and retirees.
Click here to read the full text of the Pension Action Center’s letter to the IRS. For more information on services provided by the Pension Action Center, visit http://www.umb.edu/pensionaction or call 617.287.7307 or 888.425.6067 (toll free). Stay updated on the Pension Action Center’s activities by following them on Twitter at www.twitter.com/pensionaction.