Can your New York employer withhold your pension when you retire?

On Behalf of | Jul 19, 2024 | Employment Law |

 

Retirement is an essential and exciting milestone. In New York, specific rules and regulations determine if an employer can withhold pension benefits. When planning for retirement, it’s important to understand your rights about your pension.

Vesting requirements

Vesting refers to the time you must work for your employer before you are eligible for pension benefits. Once you are fully vested, your employer cannot withhold your pension. Vesting periods vary depending on your pension plan. Typically, it ranges from three to seven years. Make sure you know your plan’s vesting schedule to ensure you qualify for your benefits.

Reasons for withholding

It is important to note that situations where an employer might withhold your pension benefits are rare. These might include instances of misconduct or fraud related to your job. For example, suppose the courts ruled against you for embezzlement or other serious crimes during your employment. In that case, your employer might have grounds to withhold your pension. However, these situations typically involve severe violations.

Understanding your plan

It’s crucial to understand the specifics of your pension plan. Review the plan documents and speak with your human resources department to clarify any questions you have about your benefits. Knowing the details of your plan helps you ensure you meet all requirements and avoid any potential issues when you retire.

Moving forward

Once you’re vested in your pension plan, your employer generally cannot withhold your benefits upon retirement. This is your right. When planning for retirement, it’s important for state employees to familiarize themselves with the specifics of their pension plan. Knowing the limited circumstances under which withholding might occur can help you move forward confidently and receive the benefits you’ve earned.