I worked for my employer for almost thirteen years (8/14/1989 - 8/2/2002) as a full-time employee, and this employer has a defined benefit pension plan. I was fully vested after seven years of employment with the company. Now, I want to get access to the money that was contributed to the pension plan upon my behalf. The problem seems to be that I am not fifty-five. I am only thrity-five. I have been working for this company on a part-time basis since 9/2002.

Does anyone have any suggestions on how I can get access to my benefits in the pension plan at this time? I am currently a full-time student and this money would make paying for my education so much easier.

Any replys to my question would be greatly appreciated.

There is no requirement that an employer provide for a distribution to an employee upon termination of employment. If the plan requires that you attain age 55 before you can recieve your benefit then you have no other options unless the plan provides for an automatic cashout of benefits with a value of $5000 or less.

Contact the HR department or Plan Administrator to get a copy of the summary plan description. This will explain all the forms of distributions and the requirements for each.

Even if the plan allowed a distribution currently (and it probably doesn't), you would not be eligible for one until you completely terminate employment. As long as you are an employee (even on a part-time basis), you cannot receive a distribution.

MGB,

Do you have a specific cite? I spent 1/2 day once looking for a citation saying you had to terminate before you could receive a distribution. Thanks in advance.

Ishi, the last of his tribe

Ishi, I've done the same many times. I think the reverse logic is relevant; there is no distributable event without termination of employment or attainment of normal retirement age (if the plan so permits).

If anybody can find a cite, MGB can, but I have never found anything concrete.

See IRS Reg. 1.401-1(B)(1)(i) which defines a qualified pension plan. There are also numerous revenue rulings and PLRs that recite this basic qualification requirement for defined benefit pension plans.

See Rev rule 69-277, 74-417, 71-24

You won't find any specific cite that prohibits all in-service distributions from pension plans. However, the effect is much the same, since the IRS position developed over the years has alway been that "pension plan" implies that in-service distributions are not allowed, with an exception for voluntary contributions. The above citations illustrate this.

Try TIR-1403, Q M-15 , (Also IRS Announcement 75-110)