Thread regarding ExxonMobil Corp. layoffs

@ 3gmf+1823MV8U

You can take it as regular cash (put it in a checking account) but you will pay taxes on that sum.

If you don’t need it I would recommend placing it in a retirement vessel. Let it work for you until retirement. Some of the best advice I’ve been given is pay yourself first (save for retirement). The more you save and the earlier you it will be huge in retirement.

Anybody have any idea if the "lump sum" has to go to an IRA, or can you just get a check?

Op here

Thanks everyone for the helpful comments and advice.

It means that lump sum is not ordinarily available - you either take it immediately and roll it into an IRA, or you are stuck with a montlhy payment after you are 60-65. i.e., you can't come back at age 65 and ask for a lump sum equivalent of your monthly ExxonMobil pension.

Best to think of this as a buy-out. As a non-retirement terminee, the company no longer wants you on the books. The terminee lump sum option is paid out immediately (in 2021).

Imagine you have 6 years with the company and are 30 years old and get laid off. XOM would rather buy you out than have to remember your name for another 35years to pay you out an annuity in the year 2055.

I too found the involuntary pension lump sum verbiage to be somewhat confusing. However, I think it means that if you’re under 50, the lump sum would be paid to you at age 50 and at the age 50 % (24%) as shown in the terminee table on the pension summary description. The involuntary verbiage talks about “within 3 months “ and I think that is referencing making the decision whether to take the lump sum or annuity. Alright, with all that said, I’m speculating as I figured I’d verify if I get the pink slip

Good post @1ebt

A direct transfer to an IRA will avoid a 10% IRS penalty for those under 55 I’ve also read.

If this is a fact - Lump Sum prior to Retirement age - as an option.
Take this gem (said Adam Sandler).
Next few quarters have interest rates very plus-side for Lumping it.

Really - on leaving, take the the Lump Sum (forget pension) as follows:

• Establish a standard IRA (Individual Retirement Account) with a fiduciary-qualified broker. If you trust the broker, they can help manage it forward as well. Go with US Growth funds for safety for now.
• Do the papers for the Lump Sum (if Notary needed, most bank branches do it for free). Clearly direct the payment be made to the IRA (not yourself). This will result in no taxes and no other company deductions.
• Deposit that LS in the IRA soon as possible.
• Sit back. Move on. Occasionally look at the IRA. Will be there for you and progeny and/or issue.

The HR section on Pension is actually well laid out, and has multiple examples. Every eligible employee is vested after 5 years. To be a retiree from XOM, you must have at least 15 years of experience and be at least 55 years old. If you are terminated before 55/15, then you are a terminee and your pension benefits are different than the retirees.

NOTES:
Only retirees can select a lump sum.
Benefits can begin for retirees and terminees as early as 50 years old.
If retirees take benefits before age 60, then the benefit is discounted (like 5% each year below 60)
If terminees take benefits before age 65, then the benefit is discounted on some scale (in the HR website)

SPECIAL NOTES (ONE TIME) DURING THIS INVOLUNTARY REDUCTION:
During this reduction, terminees can take a lump sum payment.

They will give involuntary selected people lump sum, shortly after last day. you want to see the amount put 1/30/2021 at your last work day and 02/2021 as the day you want to receive it into pension estimate, in form of payment select 100% lump sum

EM is doing a lot of things to get off cheap. It’s unbelievable.

Three months pay....are you talking about PIL? Because lump sum would be paid at 3 months after separation but the payoff will be different than 3 months pay (quite a bit more in fact).....

But concerning severance, the company is

Three months pay is nothing in today’s environment. If you are fired that would be nice, but oil companies usually pay a lot more. I work for a large independent and those laid off at the first of this year with five years with the company got six months plus. Some got 18 months salary for many years. Times are different now, but it sure seems like EM is getting off cheap.

Op here

Go to Employee connect

Search

Online projection tool instructions

Click the result link for

“Access to the pension benefit online projection tool instructions and troubleshooting guide”

Find the link on that next page

It is saying if you are a non-retiree (under age 55 & more than 5 years with XOM) this is the only time the company will buy out your pension. Then it tells you how to calculate how much the lump sum will be.

OP, where did you find that paragraph? US HR VIP site? Pension SPD?

65 year old me will just have to understand that 37 year old me wanted that lump sum at 3 months. I think a lot can be said about having money when you are more capable of doing fun things than when you are old (assuming you can at least take care of yourself after 65 and not be a drain). This is wonderful news given an other wise sh–ty situation.

My read of the program: if you are vested in the pension (5 yrs service) you can take a Lump Sum 3 months after separating or an annuity beginning at age 65.

Mr. K

Op here

The pension site seems to talk about 50-65 years old range a lot so my guess would be 1) lump sum at that 3 month mark or 2) wait until 50-65 range and get an annuity?

I wish they would include more “examples” but transparency and clarity are not exactly XOM cup of tea I suppose.....

I think it means that the lump sum is not normally available to non retirees. From the ExxonMobil Family website: “If you are not a retiree, but are vested in the Pension Plan when you leave the company, you may choose only a Basic annuity, a Qualified joint and survivor annuity or a Joint annuity.”

I left in July and was told that as a non-retiree (not 55+), the lump sum option was only available in that first three month period. If I chose to wait for disbursement and then try to withdraw the lump sum at a later date, it would not be available. I don't recall if it would be available again at 55+, but it was clear I only had a couple of months to get everything together to pull the lump sum. Sort of a take it now or lose that option sort of deal.

I think it may mean that as a ‘lump’ sum it is a one time payment only (not an annual or monthly payment)

??

OP here

I think it means the lump sum at 3 months is your only option....

Beyond that, I am stumped....

Ok I will stop guessing....