Types of Pensions

• Pensions almost always come in two varieties: defined benefit pension and contribution pension plans. A defined benefit pension is a benefit that the employer agrees to pay the employee after retirement. A contribution pension calculates retirement benefits based on how long the employee worked, the salary level achieved and/or seniority.
  
  

Why Some Are Unclaimed

• A vast majority of unclaimed pension benefits exist because of sheer forgetfulness or laziness in notifying past employers of a change in address. The problem of unclaimed pensions is more widespread than you might think. The Pension Benefit Guaranty Corporation reports that it has more than 30,000 unclaimed pensions amounting to $133 million.
  
  

Claiming Lost Pensions

• Pension insurers will not seek out people who forgot to claim benefits. This requires you to check with various benefit insurers to determine if you have any accounts. Once you do find a pension in your name, simply contact the owner of the directory and provide proof of identity. You can even receive future benefits still owed to you.
  
  

Federal Oversight

• The federal Employee Retirement Income Security Act of 1974 established guidelines for companies that offer pension plans. ERISA regulates when an employee becomes eligible for pension plans and prevents pension managers from making risky investments with benefits. It also established the Pension Benefit Guaranty Corporation to guarantee benefits in the event that a company goes out of business.
  
  

Scams

• Some companies sell the same services that the federally chartered PBGC provides free of charge. These are scams, because finding a lost pension requires just Internet access and a quick search. Shady companies also pander to Internet users by stating that they have unclaimed money when the companies could not possibly know that without having a person's name.