Is lump sum available when resigning?

I have more than 15 years of service but am in my 40s. Alight gives me the following info when I calculate my lump sum:

One-Time Lump Sum

No payment to your beneficiary.

If married, your spouse must consent.

To choose this option, you must take all of your pension benefit(s) as a lump sum. Does this mean I cannot get a lump sum when I resign?

“This option is only available to you upon termination and at your Normal Retirement Date, or immediately upon separation if later than Normal Retirement Date.”

#401K #EmployeeRights #Resignation #Retirement #Severance

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You only qualify for 75% of your pension and discounted health insurance post retirement if you are 55 years old with 15 years of service. If you are not 55 years old, your lump sum is significantly discounted, and you get no health insurance.

If you are age sixty, you receive 100% of your pension.

@jn nope

I thought you had to have 15 yrs and be 55 to get the lump sum.

What if you hold out until the "Earliest Commencement Date" shown in Alight? Looks like when you turn 50 you are eligible for some sort of benefit. Not sure if that includes medical?

Policy was changed in ~2020, you can take lump sum when resigning but you have to take it at resignation (can't be delayed).

@OP don’t believe so, I think you get a discounted annuity at 65

My understanding is that a resignation would be treated like a termination and you would be offered the lump sum option as shown in Alight (assuming you put the correct dates in).

I would suggest you call HR/Benefits to ask but 1) they are useless and 2) hinting that you might resign would probably get back to your manager (of course, maybe if that happened you'd end up getting a PiP and 3-months' pay is actually the path you should take)

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Is lump sum available when resigning?

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