Probably a silly question: as I have just vested my first pension after five years of service and I am really panic about reorg(I am in wave 2), just wondering how much I can get if I cash out the pension? Will the esteem lum sum amount shown in total benefits webpage all be given to me or it needs to be discounted by a year-based factor(~4%?) I am in early 30s and my expected retirement age is shown as 65. So if it needs to be discounted, really not much paid to me as pension…
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A related question: I see two numbers of pension. One called ‘esteem lump sum’ in total awards page, the other in fidelity’ website called pension payable at 65. The latter is much larger than the former. Does it mean the number in total awards is the one after the rate based reduction?
I would say wait at least Trump makes his first cut in the interest rate, and if possible even after two cuts if they happen soon and you can wait, your pension lump sum will be significantly bigger when interest rate drops half percent, use the calculator to figure out, which way it will grow faster, the wait for interest rate cut or let it grow in your 401k or IRA equities.
Use the calculator with your last day on payroll and the first day of next month to receive your pension and see how much you get as lump sump. I believe there is 5% cut per year pre 60. Since you are more than 20 years away from 60, you probably get nothing if you cash out now
Read the fine print. The vesting period is actually a little over 5 years.
Based on the June layoff, it is likely you will return to Chevron. Many employees accepted the packages, leaving numerous positions.
Put it all in BTC
@bc thanks for your advice !
Agree with @bc. It will be reduced if you take the lump now and roll it over as opposed to leaving it for CVX to manage until 65 or later. However, at least you know it belongs solely to you in an IRA, and it will not be at risk should Chevron or PBGC fail to guarantee funding nearer to your retirement.
You should get it all. Just roll it over into an IRA and manage it yourself. Don’t let the company do it.
Run the calculation yourself based on the Pre-65 retirement handbook (which is a crock cause it’s within the Post-65 handbook since HR was too lazy to update both). Take everything you can get.
You’ll get nothing and like it!