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No. of Recommendations: 1
That sounds like my "pension plan," which isn't really a pension plan at all. Ours is a Cash Balance Pension Plan, where they put an amount equal to 6% of my salary aside, plus an interest credit amount that's calculated...somehow. (It think it's based on some bond index--it's not great--better than a saving account, though). Once I'm fully vested it's mine, but I think it was 5 years vesting? (I've been with my company 17 years). When I retire, I have the option to buy an annuity with it, roll it over into an IRA, or I suppose take the cash subject to a bunch of penalties and taxes.

If her plan is something like mine, more details are probably outlined in the benefits manual with her HR (ie, how they calculate the interest credit, and what her options are if she leaves the company). I looked at mine and I don't have the option to leave it in place when I leave; I have to decide what to do with it within 90 days.

In this kind of plan, the money is not technically mine until I leave the company. It's on the company's books somehow as an asset to the company. I, personally, wouldn't want to leave it there even if I had the option, and even though my company is a good, financially solid one. I can get better earnings elsewhere, and money in MY hot little hand is better than in someone else's.
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