Why can't my husband access his pension in this emergency situation?

[clarje123]

What is the name of your state (only U.S. law)? New York

My husband and I are both out of work and about to lose our coop. We've been on public assistance for 6 months. In Dec., my husband was able to only get $2,000+ from his $25,000 pension fund. This is an emergency. Why is the administrator of the plan saying he has no access to this money we desperately need.
Thank you.

What is the name of your state (only U.S. law)?

 

[swalsh411]

The plan is governed by rules which may or may not allow a withdrawal in your situation. Ask the administrator to send you the rules. If it's not allowed, it's not allowed. The administrator is not allowed to make an exception.

 

[cbg]

If this is an honest to goodness pension and not a 401k or like account, you're extremely lucky he was able to access any money at all. Any kind of retirement fund is VERY heavily regulated by Federal law and it's rare that there is ANY kind of access, regardless of the situation, prior to retirement.

The rules are very slightly less restrictive for 401k's or 403b's, but even then the administrator is bound to follow the rules of the plan document. The plan document will spell out exactly when, under what circumstances, and how much can be withdrawn. The administrator may not under any circumstances whatsoever violate the rules of any kind of retirement plan without VERY heavy penalties, which can include hefty fines and in some cases having the plan disallowed altogether.

If the plan only allows a $2000 withdrawal under these conditions, then the administrator can only allow $2000, period. It is not a matter of choice. It is a matter of law.

 

[davew128]

Why is the administrator of the plan saying he has no access to this money we desperately need.

I believe the administrator would be the one you should direct your question to.