Or maybe zero percent instead of 100 percent. But you won't be able to make new deposits to that plan. You may have no choice but to roll the balance into your new employer's plan, if there is one, or into an individual retirement account. But a new employer may let you immediately roll over your old balance even though you can't otherwise participate. To preserve your right to a later rollover, you must set up a new IRA for the funds and not put any other money into that account.
Traditional pensions can pay off for older employees.
That's because benefits in such a plan are typically based on the final three or five years of average income. Latecomers, though, don't benefit from the boost to a payout that comes from longevity. Many who change jobs fear they might be cut off from medical insurance. The Health Insurance Portability and Accountability Act, enacted late in 1996, provides that in most cases you and your family are entitled to coverage under a new employer's health plan without an exclusion for pre-existing conditions. Facing these costs is a reason to seek a signing bonus.