By Karyn M. Gorman

In 1993, the U.S. Administration on Aging issued a request for proposals on projects to help assist people with their pensions because Congress was overwhelmed with questions on the matter. The Gerontology Institute at the University of Massachusetts submitted a proposal and received a grant that allowed it to begin the Pension Assistance Project in Massachusetts in 1994.

With all the questions surrounding pensions, Ellen Bruce understood the need for a program that helped explain pension benefits. Bruce, associate director of the Gerontology Institute at UMass Boston, had previously studied income issues regarding the elderly. She and Jack Pizer of the Gerontology Institute were the driving force behind submitting a grant proposal to the U.S. Council on Aging. The Pension Assistance Project was formed after the Institute received one of the seven grants distributed nationwide. They began taking cases in 1994 and since then the Project has helped 2,800 people and recovered over 13 million dollars. Twenty-five percent of people receive or increase their benefits.

Bruce, herself a lawyer, says that pensions "are a very complicated area of law."

The Pension Assistance Project helped Thomas Rossetti buy back credit toward his pension from a job he worked at in 1978. Rossetti said, "It was difficult for me because I had no proof going back that many years." Though it was 25 years ago, Rossetti was still entitled to benefits from his previous employer. Rossetti discovered the Project after trying to gain information through the City Retirement Board and Social Security.

"I had tried all avenues" before he was referred to the Pension Assistance Project, Rossetti said. "This was an ongoing thing for about month, corresponding between them and me."

Cases such as Rosetti's are assigned to volunteers at the project who interview and investigate the claims of the pension beneficiaries. Volunteers also help their clients obtain the proper documents and fill out the proper forms to obtain their benefits.

Edris Kelley is one such volunteer who started work with the Pension Assistance Project about 10 years ago. After retiring from teaching after 34 years, she was quite dismayed to learn some of the facts regarding pension plans.

Certain state and local workers, including teachers, do not pay Social Security taxes. As a result, any Social Security benefits that they may be entitled to, such as those from a previous employer, may be reduced. The Government Pension Offset and the Windfall Elimination Provision are two laws that can significantly affect a retiree as well as their spouse, particularly for state and local workers. It is important to find out if either law will impact you before retiring as both laws can have a negative effect on pension or Social Security benefits received. Many more women than men are affected because they may take time off from working to care for children, which leads to a reduction in accruing Social Security.

There are some common problems that arise when people seek to collect their pension. Some simply cannot find their pension because the company they worked for was bought out or moved, for example. Other times companies will deny a pension, arguing that an employee was not there long enough when in fact they were. Companies sometimes do not calculate a pension properly resulting in the employee being shortchanged. Additional complications may arise in situations of divorce.

The Joint and Survivor Benefit has also been a source of contention to many. Under the Joint and Survivor Benefit, the pension of one spouse is paid out over the lifetime of both. For example, if a husband retires, he must have his pension paid over his lifetime and his wife's unless his wife signs a waiver. This means that should anything happen to him, his wife still receives money from his pension.

The problem with this plan is that it significantly reduces the amount of the pension that the retiree receives. Also, should his wife happen to pass away, he is not then entitled to the full pension. Sometimes a company will deny that a couple signed the Joint and Survivor Benefit and refuse to pay the surviving spouse.

The Pension Assistance Project offers counseling on all the above issues and seeks to recovers benefits, explains pensions more clearly, addresses eligibility problems, help locate pension benefits, provide a list of financial advisors and referrals to attorneys when necessary. All these services are provided free of charge.

In 1998, the Pension Assistance Project expanded and became the New England Pension Assistance Project, covering all six New England States. Genie Medeiros is in charge of handling cases outside of Massachusetts. She and the others in the Project are able to work out of Boston because most everything is done by phone and paper. "It is a lot of investigational work over the phone," explains Bruce.

"We have a big phone bill" she jokes.

After working hard and retiring, you are entitled to your benefits under the law. If you have any questions regarding your pension or need assistance, you can contact the New England Pension Assistance Project at 617-287-7307 or visit the website at pensionaction.com.