Once you know the type of retirement pension you are enrolled in and the eligible benefit amount, the next important step is to check when you can start receiving your retirement pension.

1. When can I start receiving my retirement pension?

Consider the following regarding when you can start receiving your retirement pension:

• The start date for pension payments is specified under Article 7 of the Constitution.
• Some pension plans allow for earlier pension payments. You can check the payment start date in your pension documents.

In some cases, if you continue to work after retirement age, you may not be eligible to receive your pension. In this case, you must notify about the pension that is not paid within the first pay period of that year, and this must be included in the pension summary. If you wish to continue working after retirement, you must inform your employer's pension administrator and request to stop pension payments.

2. General conditions and exceptions for pension payments

The following are general conditions and some exceptions for pension payments:

• Defined Benefit Pension and Cash Purchase Pension are usually paid upon reaching retirement age, but some may allow for earlier retirement.
• 401(k) plans allow you to withdraw your account balance after retirement.
• 401(k) pensions can be paid if you reach age 59 ½, are still employed, or are experiencing financial hardship.
• Profit Sharing Pension can be received upon retirement after a certain number of years of service.
• Phased Retirement options allow you to reduce your working hours after retirement age while continuing to receive your pension and earn additional income.
• In the case of ESOP, pensions may not be paid for reasons other than retirement, death, or disability diagnosis for up to 1 to 6 years.

3. Precautions when receiving pension payments

• If you withdraw money before age 60, unless you convert it to an IRA or another tax-exempt retirement pension, additional income tax or penalty tax may apply.
• If you withdraw your pension before retirement age, the total amount of pension you eventually receive may be reduced.

4. Until when can I receive my retirement pension?

According to the Constitution, even if you want to delay receiving your pension, the payment timing is set. The usual payment start date is April 1 of the year you turn 72 or at the time of retirement. However, if you continue to work after age 72, you can still receive your retirement pension. If you reached 70 ½ years old in 2020, you can start receiving minimum pensions from 2021 even if you have not turned 72 yet.

5. How are retirement pension benefits paid?

• Defined Benefit Pension or Cash Purchase Pension are generally paid as lifetime annuities, which provide a fixed amount each month for life. There are also various payment options, so it is important to check in advance.
• Defined Contribution Pension (e.g., 401(k)) can generally be received as a lump sum or equal payments over a certain period (e.g., 5 or 10 years). It can also be paid as a lifetime annuity monthly.

6. If I die first, will my retirement pension be passed to my spouse?

• If you have a Defined Benefit Pension or Cash Purchase Pension, your spouse is eligible to receive the pension if they are alive. The surviving spouse usually receives 50% of the pension, and some pension plans may adjust this to 75%. If the spouse receives the pension after your death, the pension amount may be reduced.
• By completing a spousal waiver consent for the pension, your spouse can immediately receive the pension benefits for the family.

Defined contribution pension plans like 401(k) may have different spousal benefits. In most defined contribution pensions, if you die before receiving the pension, all benefits automatically pass to the surviving spouse. To designate another beneficiary, the spouse must sign the waiver consent, which requires proof from the administrator or staff.

7. Updating retirement pension information after marriage

For a retirement pension enrolled before marriage, you must inform the pension administrator and employer of your marriage and update your personal information after marriage. If you do not have a spouse, you must designate a separate beneficiary.

8. If you retired before January 1, 1985

If you retired before January 1, 1985, the pension regulations may differ. For more information, you can check the U.S. Department of Labor website (askebsa.dol.gov) or call 1-866-444-3272.