Case Example – Lee Gets Covered By A Pension Plan At Work, continued

Lee – What will I receive?
PA – Your payout typically depends on how long you worked for your employer and on your salary. When you retire, you can choose between a lump-sum payout or a monthly annuity-type payment.

Lee – Do I have to do anything to manage my pension?
PA – No. You just need to do your job. You’re automatically enrolled in the plan after you’ve been on the job for one year. The benefits are credited to you but they aren’t 100% yours until you become fully vested; that takes five years.