{"id":357820,"date":"2016-04-04T10:45:29","date_gmt":"2016-04-04T15:45:29","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/employment\/wages-and-benefits\/can-i-get-my-pension-money-if-i-am-laid-off.html"},"modified":"2025-03-13T17:12:00","modified_gmt":"2025-03-13T22:12:00","slug":"can-i-get-my-pension-money-if-i-am-laid-off","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/employment\/wages-and-benefits\/can-i-get-my-pension-money-if-i-am-laid-off.html","title":{"rendered":"Can I Get My Pension Money If I Get Laid Off?"},"content":{"rendered":"\n
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Can I Get My Pension Money If I Get Laid Off?<\/h1>\n
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\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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Pension fund accessibility after a layoff depends on the type of plan and specific eligibility criteria. Vesting also determines an employee’s right to employer-contributed retirement funds.<\/p>\n\n <\/div>\n\n

It\u2019s crucial to review your pension documents to understand the conditions (like a layoff) under which you can access your funds.<\/p>\r\n

An unexpected job loss is overwhelming on its own. Understanding pension documents and how to access your funds adds another layer of complexity. An employment law attorney<\/a> in your area can help.<\/p>\r\n

This article provides an overview of what can happen with pension and retirement benefits following a layoff<\/a>.<\/p>\r\n

ERISA and Retirement Plans at a Glance<\/h2>\r\n

A federal law called the Employee Retirement Income Security Act<\/a>, or ERISA, governs employee pensions. The U.S. Department of Labor<\/a> plays a key role in ensuring compliance with ERISA standards. One of the purposes of the act was to provide more transparency so employees can see what is happening with their pension and retirement funds.<\/p>\r\n

For example, ERISA<\/a> sets basic standards for retirement plans<\/a>. It requires employers to notify plan participants (employees and beneficiaries) when plan changes happen.<\/p>\r\n

It also holds those in charge of investing pension funds (plan fiduciaries) accountable for conflicts of interest. Any wrongdoing by an employer or a plan fiduciary involving funds held in an employee retirement plan would fall under ERISA.<\/p>\r\n

Read FindLaw’s article, FAQ: Pension Plans and ERISA<\/a>.<\/p>\r\n

What Does it Mean To Be Vested?<\/h2>\r\n

When a person is vested in a retirement plan, it means they have met the eligibility requirements to claim the employer-contributed part of their retirement funds. Being vested provides financial security<\/a> because if an employee gets laid off or fired before retirement age, they can take the vested amount with them.<\/p>\r\n

The vested funds are typically transferred to an individual retirement account<\/a> (IRA) or another eligible retirement savings vehicle. This ensures the employee keeps the contributions made by the employer, offering some financial flexibility and allowing them to continue building their retirement nest egg despite unexpected career changes, such as losing a job.<\/p>\r\n

To be vested in the pension means that you own it. If you are 100% vested in a pension, you own the pension, and the employer can’t take it away. That doesn’t necessarily mean you will be able to access the money<\/a> right away, as most plans need you to be of typical retirement age.<\/p>\r\n

When you become fully vested in a pension can depend on your plan. There are typically two types of vesting plans:<\/p>\r\n