does anyone know if there's a way (or if they allow) early retirement and still receive unreduced pension?
17 replies (most recent on top)
The simple answer to the original question is yes. The HR Policy was recently updated. You can now quit working, trigger your retirement benefits, make arrangements to pay for them, such as drawing funds from your 401k, and put off triggering your pension payments until you reach full retirement age. This avoids the steep discount you take, (5% per year from 55 to 61, and 10% for that last year till you reach 62) and can take your full pension. The bad news is you don’t get the paychecks from the date you quit working till you trigger your pension payments. The good news if you have been pouring everything you could into your 401 for the last 30 years, you may be able to swing it and stop working. See your financial planner. I’m seriously contemplating it.
Wondering if company saves any money on taxes if giving lump sum pension buyouts and how much in combined ratio % it would save annually by doing pension buyouts? Anyone with that knowledge that can answer?
The point is that if SF did decide to get out of pension administration altogether as now new employees don’t get a pension, what benefits to SF would be realized to the extent that all current and retired employees that have pensions would be impacted. If lump sum buyouts are offered or made, there are decisions to be made by pensioners to evaluate their offer as after doing the calculations you are going to most likely be losing value compared to leaving it as it stands now, the current certainty vs what you might lose by taking lump sum if it comes down to having to choose.
Why would SF add 1 or 2 years to service? It is their money not yours-until you retire or terminate. pipe dream.
I would assume they would buyout by adding 1 or 2 years to your service and the lumpsum would be enough that a7% return on your annuity would be that you would be ahead. Also by flat amount it is meant that once you retire and take the pension today at SF your pension is the same each month for life as there are no COLA added to pensions at SF today. Given that, how much would SF save in pension liability by doing that? Hopefully enough that it would be worth it to take the buyout.
Lots of chances-no, zero, fat to name a few. Not sure why you think pension is a flat amount? It is based on your 5 consecutive highest annual earnings. Actually it would benefit SF greatly to do what you asked-steep discounts for early access and elimination of that liability going forward.
Any chance SF will buy out pensions, that is give lump sums to employees that will be turned into annuities with another financial firm, with some increase in amounts, without termination of employment? Current pension doesn’t allow for any annual increase, it is a flat sum. It would be great if we had a chance to get annual increases in payouts due to ever increasing inflation.
Great question BTW if you contact the Benefits Center no one seems to know the answer.
No.
severance
I’m sorry. Did you seriously just ask if you could stop working early but get the benefits of a worker who works all the way to retirement age?
Can I eat full fat icecream everyday and look like I did when I was 18?
What kind of unthinking person asks a question like that?
Not unless you can retire and delay withdrawing from the pension. You are allowed to do that now but for how long can you delay that?
I’m 99% sure that’s a NO. But I’m 100% certain that you can’t finalize it on this forum.
Of course not.
Only if they want a class action lawsuit from 50,000 retirees.
Unreduced I doubt it, but I'm curious about the possible terms for any early retirement
See if you can find anything in "My State Farm Benefits Resource Center", link in first box on https://www.statefarm.com/retirees