If you make a claim for benefits that is denied, the plan must notify you in writing - generally within 90 days after receipt of the claim - of the reason for the denial and the specific plan provisions on which the denial is based.  If the plan denies your claim because the administrator needs more information to make a decision, the administrator must tell you what information is needed.  Any notice of denial must also tell you how to file an appeal.  If special circumstances require your plan to take more time to examine your request, it must tell you within the 90 days that additional time is needed, why it is needed, and the date by which the plan expects to make a final decision.  If you receive no answer at all in 90 days, this is treated the same as a denial, and you can proceed to appeal.

You must be allowed at least 60 days to appeal any denial.  After receiving your appeal, the plan generally must issue a ruling within 60 days, unless the plan provides for a special hearing.  If the plan notifies you that it must hold a hearing, or that it has other special circumstances, it may have an additional 60 days.

The plan must furnish you with a final decision on your appeal and the reasons for the decision with references to the relevant plan documents.  If you disagree with the final decision, you may then file a lawsuit seeking your benefit under ERISA.  Courts generally require that you complete all the steps available to you under the claims procedure in a timely manner before you seek relief through a lawsuit.  This is called exhausting your administrative remedies.

Q: When should participants expect to receive distributions from their pension plans after terminating employment?

Generally, the law requires plans to pay retirement benefits no later than the time a participant  reaches normal retirement age.  But, many plans -- including 401(k) plans --provide for earlier payments under certain circumstances.  For example, a plan's rules may  allow participants in a 401(k) plan to receive payment of benefits after terminating employment.  The plan's Summary Plan Description (SPD) should set forth the plan's rules for obtaining the distribution as well as the timing of distribution after termination of employment.