Has anyone got a pension lump sum payout after voluntarily quitting that is not tied to a PIP or involuntary layoff?
8 replies (most recent on top)
@2ojf+19IR1kUH
I’d go dig around the retirement HR website (or send an email). There is an age where the 15 year service no longer applies. Can’t remember if that’s 60 or 65.
If you are leaving voluntarily before being retirement eligible, is there any reason to not take the lump sum? Seems like a no brained, even with taking a lower payout, from a risk management perspective.
Yes, you can get it as a lump sum if you resign. There's a discount for everyone for taking the lump sum, but it opens up options. If you DON'T take the lump sum in the first 3 months after separation, you can only get the annuity, and you are subject to the strict rules for the annuity and who it can be passed on to. Do the math, model it on the benefits site (pick a future month and let it show you the calcs). If you still have some years to go before retirement, the value could be made up pretty reasonably with a good investment in another financial instrument with better legacy or early access options. Warning: it will take 5-6 months...yes MONTHS...to get the lump sum from the time you separate. It's NOT a quick process or a good stop-gap of income.
They changed the pension benefits last year... You take a penalty from taking the option early, but hey! Money is money right?
Are there special requirements that need to be met for taking the lump sum early? Birth month contains the letter 'R'? Must drive a Prius?
Seriously, I'm over 60, shy of the 15 year mark and fed up with the organization. I'm ready to walk away now and wait for the monthly pension payment at age 65, but the lump sum would be my preference.
Yes, check in with the Benefits line. If you were PIP’d or VIP’d and vested, you can get the lump.
Yes, resigned in January and got the lump sum option.
Yes