I’ve heard that if you leave once your pension vests (after 5 years), the company likes to pay you your lump sum to get the liability off the books.
Is that true?
And if so, anyone know what those payout amounts look like after 5, 7, 10, 15, etc years?
True. Use the calculator. Interest rates high means lump sum low and vice versa.
You don’t have to “try to figure it out” there’s a calculator on alight, just enter the date you want to leave and make the layout date the same.
@b6 may I ask at approximately what time you left? Trying to figure out the formula…
@b6
I had one friend leave during covid (low interest rates), 7 years with the company, making 90k. His payout was around 40k
Had another friend leave with 8 years with the company and was making over $150k, their payout was something like $35k.
The interest rate they use for the discount factor makes a huge difference.
6 years of service. My pension was $11k and my base when I left was $150k CL25
Which interest rate is the lump sum based on?
There should be a calculator to help with the decision on whether to take the lump sum or annuity. Timing and interest rates also matter.
Suggest you time the exit toward the end of the quarter.
The payout will depend on your accrued pension benefit (salary and years of service), your time to retirement, and current interest rates. I resigned in the early 2020s with 10-15 years of experience as a CL28 - my lump sum was about $300k.