Thread regarding ExxonMobil Corp. layoffs

IRS publication 575 is your friend for questions related to pension to IRA rollover

If Lump Sum is rolled into an Individual standard IRA - there should be no Tax deduction or other penalty after age 60.

Regarding the article - surely GE was diddling employees on Lump Sum offering.
My take on EM's Lump Sum (under extremely low interest criteria in 4Q2020),
is that it is fairly equivalent to the extended pension amount over the years.

May the toils of nature not allow me to 'live' past 80, please.

How does the 5% discount between 60 and 55 apply? When calculating a lump sum for someone below 55...is it still 5% per year discount?

Important caveat on the Forbes Calculator:

From digging into the sheet, it looks like they are assuming the pension amount is adjusted for inflation every year. My understanding is that it does not. To fix this, go down to cells D204-D270 and change the formula to 12*B18

In my case, this cut the calculated value by 80%

You do not have to be 55 to get the lump sum. The policy was changed a few years back and there's an addendum in the back of the policy document. I believe there is another revision for this upcoming purge that changes the vesting from 15 years to 5 years.

I left in July with 20 years of experience and 45 years of age. Benefits Admin sent me some documentation after my separation to outline the options, so it was fairly easy to get the paperwork sent off. Had to notarize a few pages. I was given a lump sum option and took it. Taxes were applied at 20%. My check came right at three months after leaving.

You do not have to be 55 if part of the involuntary program. The FAQs clearly say you have the option to receive a lump sum option if vested. Vested = 5 years irregardless of age.

No u actually get the lump sum if you are 55 You will just have to pay 30% tax but part of it can be gotten when you file your tax returns.

How do you access this after you leave? ExxonMobilFamily site?

Terminees will get the chance to lump sum their pension within 3 months even if they are not 55 nor have 15 years. They can roll over to an IRA without taxes being withheld. This is a special window, allowing non-retirees the benefit they don’t normally have.

You only get a lump sum if you are eligible. 55.

If you are not, you have to wait to 65.

I believe the company holds 20% of your lump sum for taxes.