Potential Private Retirement Benefit Information notices sent by SSA
The Social Security Administration (SSA) recently sent notices to social security filers regarding Potential Private Retirement Benefit Information. This notice informs recipients about potential retirement benefits earned from private employer plans, known as “deferred vested benefits”. The IRS provided this information to SSA based on data from private retirement plan administrators. Recipients are advised to review the plan details provided in the notice and contact the identified plan administrator to claim any owed benefits.
Additional inquiries that may arise include:
- Distributions from Retirement Plans: Participants typically receive retirement benefits upon reaching normal retirement age, though some plans, such as 401(k)s, allow for earlier distributions under certain conditions. Details can be found in the plan’s Summary Plan Description (SPD).
- Employer Sponsorship of Retirement Plans: Employers can sponsor multiple types of retirement plans (e.g., 401(k) and pension plans). Recipients may be eligible for benefits from more than one plan if their former employer-sponsored multiple plans.
- Types of Retirement Plans: Defined benefit plans promise specific monthly benefits at retirement, while defined contribution plans do not guarantee a specific benefit amount and are based on contributions and investment performance.
- Surviving Spouse Benefits: ERISA provides protections for surviving spouses, ensuring they receive benefits earned by the deceased participant, depending on the plan type and circumstances.
For those needing updated contact information or facing other challenges such as employer closures or bankruptcies affecting retirement benefits, resources like the Department of Labor’s website or the Pension Benefit Guaranty Corporation (PBGC) can provide further assistance.
For more information, visit the PBGC’s website or contact them toll-free at 1-800-400-7242.
If you have further questions about this communication from the SSA, please contact a ShindelRock tax professional.