Commencing your benefit

Feel like retirement is just around the corner? Congratulations! You’re closer than ever to this major milestone. Making the decision to retire is a deeply personal one—as is deciding how and when to commence your pension benefit. Because pension plans may be designed in different ways, it's important to understand how your specific benefit works and what options may be available to you. There are a number of factors you’ll want to take into consideration, plus you’ll want to allot enough time to complete all the required steps.

Here you’ll find tips to be prepared for when the day comes, from starting the process to receiving your first pension benefit payment. You can also visit NetBenefits anytime for more detailed information or to get support from Fidelity.

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What you need to know:

Plan ahead if you’re getting close to retirement. It can take up to six months from starting the process to receiving your pension benefit.
Make sure to review your payment options and prepare the right documentation before you start the process to receive your pension benefit online or by phone. Available payment options may vary by plan.
Understand how your pension benefit payment choice could be impacted by outside factors, such as marital status, taxes and interest rates.
Start the process to receive your pension benefit online at netbenefits.com or call the Fidelity Service Center.

Commencing your pension

Get a step-by-step overview of the commencement process so you can take the guesswork out of receiving your benefit.

How an annuity works

Learn about common annuity options* to see which one might work best for you.

*Subject to eligibility requirements. For detailed provisions, refer to the individual Summary Plan Description for your plan(s).

Key terms

Below are some common pension terms to help you understand what they mean and how they may apply to your benefits.

Vesting: The amount of time (typically measured in years of service) that must elapse before your pension benefit is fully yours (subject to early retirement rules).
Formula – traditional pension: The calculation used to determine your benefit, typically based on factors like years of service, final average salary and a plan formula multiplier (accrual rate).
Formula – cash balance plan: The components that make up your account balance, typically a combination of annual pay credits from your employer (which are often a percentage of your annual pay) plus annual interest credits (either fixed or variable) on your account balance.
Annuity payment: The set amount you receive every month once you commence your benefit, from your retirement date for the rest of your life.
Lump sum: A one-time payment of your pension benefit that typically represents the present value of your future pension benefit.
Eligibility: The fulfillment of all applicable plan requirements necessary for you to qualify for pension plan participation, benefit accrual, benefit commencement and/or other pension-related benefits.

Consider next steps

Take the first step

Ready to start the process? Log into your account at NetBenefits and, under “Your accounts and benefits,” click on your pension plan name. From there, you can model your pension benefit and, when ready, start the Commencement process online.

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Get 1:1 help with your personal situation

Schedule a 1:1 consultation to talk privately and confidentially with a Fidelity representative about your personal situation. Spouses and financial advisors are welcome to join these meetings.

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