I left State Farm about 2 years ago and had only worked for them 8 years. Last week I got a letter stating they were buying out my pension based on ERISA and IRS guidelines and gave me a link to a web-site for more information. Did anyone else get this? Obviously I have to take the money and they gave me a deadline of September 15, 20025. Thoughts?
4 replies (most recent on top)
@ab this is foolish. Roll the funds into IRA with a financial institution, pay no immediate tax, and grow well beyond the current value of pension.
This is not new. I was am employee who went to agency. Around 2012 they OFFERED to buy out my pension. Not mandatory. I elected to direct trsndfer to an IRA with SF Mutual funds.
There’s no conspiracy here. They can’t force anything. Just consider the options and do what you think is best.
Are you currently getting a pension? If so, how much is it? Mine is $766/month after about 8 years, and I didn't get a letter. I'm currently getting the pension though .
There is a clause in the documentation stating if the pension is below a certain value, they can buy you out. I THINK it was 5,000, but not certain
If you have a choice don't let them buy you out. You have to paybtaxes on it and it will be worth more later.